GBPUSD tumbled over the previous four consecutive days, plunging below the medium-term ascending trend line and creating a short-term descending line after the pullback on the nine-month high of 1.3380 in the daily timeframe. Also, the pair declined beneath the key level of the 38.2% Fibonacci retracement level of the upleg from 1.2390 to 1.3380, around 1.3000, recording a fresh one-month low of 1.2975.
Regarding to the technical picture, the 20- and 40-simple moving averages (SMAs) posted a bearish crossover in the preceding sessions and the price is challenging the 200-SMA, which is acting as strong retracement barrier for the bulls. Both the RSI and the stochastic have been making efforts to turn higher, with the former reversing towards its 50 neutral mark and the latter completing a bullish cross between its %K and %D lines. Those attempts provide some optimism; however, they are not enough to support positive prospects.
A downside movement below the 200-SMA and the 1.2960 support could send prices towards the 50.0% Fibonacci mark of 1.2885 ahead of the 1.2770 hurdle, which overlaps with the 61.8% Fibonacci.
A strong rebound on 1.2960 and a climb above 1.3000 could shift the bearish bias back to bullish, enabling it to surpass the short-term descending line and the 20-SMA. The next resistance would then come from the 40-SMA currently at 1.3115 and the 23.6% Fibonacci of 1.3150. Slightly higher, the 1.3200 psychological level could provide some resistance to the bulls.
Briefly, cable has been developing in a near-term negative profile as it also slipped below the 1.3000 critical level over the last couple of days. More downside extensions are expected only if there is a fall below the 200-SMA. On the other hand, bullish actions would be faced above 20-SMA (1.3050).
