• GBP/USD bears are in the market and eye a breakout to target H4 W-formation neckline. 
• Bulls could still hold up the bears ate key structure support. 

GBP/USD is offered on Monday, extending losses from Friday while the dollar index is finishing July down after a similar loss in June. However, the Greenback is rebounded from July lows that printed following below-forecast US core PCE that favoured the Fed being done with rate hikes. The following illustrates the prospects of a low close for the day on the charts:

GBP/USD weekly chart

GBP/USD is pressured below the prior week's lows but remains on the front side of the bullish trendline. 

GBP/USD daily and H4 charts

On the daily chart, we are coiling on the front side of the bearish trend and tinkering on the edge of a bearish breakout. 

The four-hour chart shows the bears moving from resistance and a 50% mean reversion level. 

This leaves the W-formation's neckline vulnerable on a break below 1.2837.

With that being said, there is the risk of a correction into the hourly M-formation's neckline first.