GBP/USD technical analysis: Falling channel, RSI weakness cap the moves above 23.6% Fibo.

Descending trend-channel, sustained trading below 200-HMA and downward sloping RSI portrays GBP/USD weakness.
1.2382 becomes the key support with 23.6% Fibonacci retracement being an immediate rest.

Anil Panchal FXStreet

Although a 3-day long descending trend-channel portrays the GBP/USD pair’s weakness, soft RSI and 23.6% Fibonacci retracement limit further declines as the quote trades around 1.2435 during the early Asian session on Wednesday.

A downward sloping trend-line on 14-bar relative strength index (RSI) portrays lack of underlying momentum that may gain traction towards channel resistance, at 1.2465, and 200-hour moving average (HMA) level of 1.2490 if successfully breaking 38.2% Fibonacci retracement near 1.2458.

Meanwhile, 23.6% Fibonacci retracement level of mid-July downpour, at 1.2430, and channel’s support surrounding 1.2410 can entertain short-term sellers ahead of pleasing them by re-offering monthly low near 1.2380.

GBP/USD hourly chart

Trend: Bearish

1. R3 1.254
2. R2 1.2511
3. R1 1.2475
PP 1.2446
1. S1 1.241
2. S2 1.2381
3. S3 1.2344

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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