GBP/USD Price Analysis: Pushing against 1.2247 support, the pound might confirm a double top formation

• GBP/USD recovery attempt fails to extend past 1.2340 and the pair falls to test support at 1.2245.
• Before 1.2245, the pair might confirm a double top formation at 1.2645, targeting 1.1845 area.

Sterling’s rebound from 1.2247 low on Tuesday has been short-lived. The pair has peaked at 1.2340 on Wednesday, accelerating its downturn as the US dollar picked up after Fed Powell’s comments dismissing negative interest rates, which has pulled the pair lower, to pierce the 1.2247 level for the first time over the last five weeks.

If the pair manages to break the mentioned 1.2245 (April 21, May 12 lows) it might confirm a double top at 1.2645 (April 14, 30 highs) and accelerate its downtrend towards 1.2165 (April 6 low) and 1.2035 (50% retracement of the March – April rally) on its wat to the double top target neat 1.1840.

On the upside, the GBP/USD should return above 1.2340 (Intraday high) and 1.2375 (April 12 high) to ease the current bearish pressure, and focus towards 1.2465/75 (May 5 and 8 highs) and finally the top of the last weeks’ trading range, at 1.2645.

GBP/USD daily chart