GBPUSD bounced off the 11-month low of 1.3350, holding in a long-term descending channel. Technically, the RSI is rising in the negative region, while the %K line and the %D line of the stochastic oscillator posted a bullish crossover in the bearish area. However, the 20- and 40-day simple moving averages (SMAs) created negative cross in the short-term.
If the pair extends its recent structure to the upside, immediate resistance could come from the 23.6% Fibonacci retracement level of the down leg from 1.4248 to 1.3350 at 1.3564. Even higher, the price could touch the 20- and 40-day SMAs at 1.3600 and 1.3650 respectively ahead of the 38.2% Fibonacci at 1.3695 and the downtrend line at 1.3725.
In the negative region, in case of steeper losses, the market could drop beneath the 11-month trough of 1.3350, hitting the return line of the pattern around 1.3300. Below that, the downward move could be endorsed with the 1.3180 and 1.3105 supports coming next.
All in all, GBPUSD has been struggling within a downward sloping channel over the last five months, and only a jump higher beyond the downtrend line and the 200-day SMA at 1.3830 may shift this outlook to neutral.
