GBP/USD Price Analysis: Bears move in towards key daily structure

• GBP/USD bulls are waiting in the flanks for a discount. 
• The daily trendline support is eyed for a restest. 

Sterling continued its slide against the US Dollar on Thursday as the UK's declining inflation pulled back market expectations of further aggressive rate hikes from the Bank of England (BoE). The Greenback was also in a rally of its own accord, weighing heavily on the inflated British currency.

GBP/USD sank to a low of 1.2839 as the money markets lowered their expectations for BoE rate hikes. The prospects of UK rates rising above 6% are now likely off the table.

The following technical analysis illustrates the market structure and leans with a bullish bias longer term:

GBP/USD technical analysis, daily chart 

GBP/USD H4 chart

We can see that the price fell into a demand zone where we could see the beginnings of a base and a subsequent move higher. The trendline support is in sight, however, and a 78.6% ratio is in eyeshot as well.