GBP/USD Price Analysis: Eyes biggest monthly loss since July 2019

• GBP/USD is on track to print the biggest monthly loss in seven months. 
• A monthly close under 1.2954 would confirm a bearish reversal. 

GBP/USD is currently trading at 1.2887, representing a 2.39% drop on the opening rate of 1.3177 observed on Feb. 1. 

The pair is on track to register its biggest monthly loss since July 2019. Back then, cable had dropped by 4.26%. 

Focus on the monthly close

The pair created a hanging man/hammer candle in March, signaling buyer exhaustion and aborting the rally from September's low of 1.1958. If the pair ends the current month below 1.2954 (hanging man's low), the bias would turn bearish.

Essentially, it would mean another bearish lower high at 1.3515 has been established on the monthly chart and open the door for a re-test of lows seen in September. 

Monthly chart

Trend: Bearish

Technical levels