GBPUSD could not sustain its recent rebound as the upward line of the descending channel proved hard to break, with the bears leading the price slightly below the the key barrier of 1.1986 and to new 31-month lows on Tuesday.
Technically, the negative momentum could stay in play in the short-term as the bearish signals have strengthened with the MACD slipping backwards in the negative area and under its red signal line and the RSI extending its downward move below its 50 neutral-level.
Extending below the 2017 trough of 1.1986, the bears would aim for the 1.1900 psychological level. Deeper, the bottom line of the channel could be a bigger challenge as any violation at this border currently seen around 1.1800 could trigger a fresh sell-off, bringing the 1.1700 round-level into scope as well.
On the upside, the 1.2100-1.2200 congested zone will remain in focus, though only a strong rally above the channel and more importantly higher than the 50-day simple moving average (SMA) would keep buying interest alive in the following sessions. In such a case, resistance could run up to the 1.2500-1.2578 region if the 1.2380 obstacle is breached as well.
Meanwhile in the medium-term picture, the downward pattern has lengthened and only a climb above 1.2578 would now switch the outlook back to neutral.
Overall, GBPUSD continues to face bearish vibes both in the short- and the medium-term time-frame.
