GBPUSD has been in a prolonged downtrend since the beginning of the year, plummeting to an all-time low of 1.0324 in mid-September. Even though the pair managed to bounce back and recoup some losses, it has turned lower again after the latest advance fell short near the 1.1480 zone.
The momentum indicators currently suggest that near-term risks are tilted to the downside. Specifically, the stochastic oscillator has dived lower and entered the 20-oversold territory, while the RSI has flatlined beneath its 50-neutral mark.
Should negative momentum strengthen, the price could encounter immediate support at the inside swing high of 1.0929. Dropping lower, the 1.0538 support could come under examination. A violation of the latter could open the door for the all-time low of 1.0324.
To the upside, if selling pressures wane and the price drifts higher, 1.1210 may prove to be the initial resistance point. Piercing through that ceiling, the bulls could aim for the recent rejection point of 1.1480 before the spotlight turns to 1.1763. Even higher, the July resistance of 1.2290 might curb any upside moves.
All and all, GBPUSD’s near-term picture has started to deteriorate, with the price slumping towards its recent lows. For that bearish sentiment to reverse, the pair needs to clearly close above the recent trend reversal region of 1.1480.
