The GBP/USD charts indicate problems: will the bears dominate the market?

Main highlights The British pound failed to continue beyond 1.3590 against the US dollar. The GBP/USD pair seems to be forming a double top pattern at 1.3590 and is at risk of a bearish reaction. Looking at the 4-hour chart, the pair has corrected some gains and has settled below the support level of 1.3525. A movement below the Fibonacci retracement level of 23.6% of the bullish movement from the swing low of 1.3139 to the high of 1.3594 has occurred. However, the pair is still above the simple moving average of 100 (red, 4 hours) and the simple moving average of 200 (green, 4 hours). On the downside, immediate support is 1.3450. The next key support is at 1.3420 and at the simple moving average of 100 (red, 4 hours). Further losses could push the pair towards the Fibonacci retracement level of 61.8% of the bullish movement from the swing low of 1.3139 to the high of 1.3594 at 1.3310. On the upside, the pair now encounters resistance near the level of 1.3510 and a descending channel. The next key resistance is near 1.3540. A close above 1.3540 could trigger further upside. In this case, the pair could rise towards 1.3590, above which bulls could aim for a move towards 1.3680. Looking at the EUR/USD pair, the pair has started a downward correction, but bulls managed to protect the support of 1.1600.