GBP/USD Tests Key Retracement Ceiling After Two-Leg Decline from 1.3661

GBP/USD has undergone two distinct downside legs from yesterday's session high at 1.3661, with the pair testing a key retracement ceiling that could define near-term direction. The first leg drove price from 1.3661 down to 1.3550 during the late Asian and early European session, with sellers maintaining firm control as price sliced through intraday support with notable momentum. The two-leg decline structure is technically significant, as it establishes a measured move pattern that traders use to assess potential exhaustion or continuation points. The pair is now testing a retracement level that serves as a critical ceiling — a failure to break above this zone would confirm bearish sequencing and likely invite further selling pressure. Key support sits at the 1.3550 area established during the first leg low, while resistance is defined by the retracement ceiling currently being tested. Traders should monitor whether price rejection occurs at this level, as a confirmed failure would suggest the downtrend has further room to extend toward lower support zones.