GBPUSD has been trading within a downward sloping channel since June 1, while more recently, it hit a fresh 13-month low of 1.3193 before turning higher. Also, the price resumed its downward move after it found strong resistance around the 200-day simple moving average (SMA) and the 61.8% Fibonacci retracement level of the down leg from 1.4248 to 1.3193 at 1.3845.
Technically, the bias is looking bearish as the MACD oscillator is edging sideways in the negative territory, while the RSI is heading north after touching its 30 oversold level. In trend indicators, the short-term SMAs are still following the declining price action.
If sellers sink below the 13-month low of 1.3193, they could meet the return line of the descending pattern around the 1.3105 support. Steeper declines under the line would need to tackle a more durable support section from 1.2855 to the 1.2655 low to persist.
If buying interest picks up, early resistance could occur at the 1.3370 tough barrier, which overlaps with the 20-day SMA. A violation of this level may boost the pair towards the 23.6% Fibonacci of 1.3442 and the 1.3510 barrier. If advances endure past these obstacles, buyers could then target the 38.2% Fibonacci of 1.3595, before considering the break above the channel for more bullish moves.
Overall, the very short-term picture remains bearish below the descending line. A break below 1.3193 would further worsen the outlook.
