GBPUSD Revisits Pandemic Lows as Bears Persist

Technical analysis of Forex market

GBPUSD corrected forcefully to the downside early on Friday, breaking below the critical 1.1400 pandemic low, where the bears halted the 2022 downtrend on September 7.

The MACD is extending its bearish wave below its red signal and zero lines in the four-hour chart, while the RSI and the stochastics are negatively charged near their oversold levels, suggesting a cautiously bearish bias.

The channel’s lower boundary is now a target at 1.1343. A continuation lower could pause near the 1.1200 psychological level before a more aggressive downfall takes place towards the 1.0890 number – this being the 261.8% Fibonacci extension of the latest bullish correction.

On the upside, a bounce above the nearby 1.1465 constraining zone could see the pair testing the 20- and 50-period simple moving averages (SMAs) within the 1.1530 – 1.1565 area. A break higher could pave the way towards the 1.1713 – 1.1760 resistance territory. If this gives way too, the door will open for the 200-period SMA at 1.1828.

Summarizing, GBPUSD is currently trading bearish at a make-or-break point. A decisive close below 1.1343 could confirm additional losses ahead. 

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