GBPUSD Could See Further Weakness; Still Strongly Negative

GBPUSD is holding above the multi-year low of 1.1350, remaining within the long-term descending channel. The technical oscillators are suggesting some positive movement in the short-term, with the MACD surpassing its trigger line in the negative region, while the RSI is standing above its 30 level. Moreover, the pair is still hovering well below the 20- and 50-day simple moving averages (SMAs).  

On the upside, the price could attempt to overcome the 20-day SMA at 1.1570 and retest the previous high at 1.1750, which if successfully broken, could open the door for the 50-day SMA at 1.1845. Should traders continue to buy the pair above that line, resistance could then run towards the 1.1890-1.2000 area, meeting the upper boundary of the channel.

A reversal to the downside, however, could find immediate support at the 1.1350-1.1410 zone, while even lower the market could test the next psychological marks such as 1.1300 and 1.1200. Below that, the lower boundary of the downward pattern may halt bearish actions near 1.1100.

Turning to the long-term picture, the outlook has been bearish over the past seven months and only a decisive close above the 1.2000 handle and, more importantly, above the 200-day SMA at 1.2670, could shift the outlook to bullish.