GBPUSD is stubbornly fighting the nearby one-year low of 1.3165, deriving strong support from the return line of the descending channel.
The technical picture however, suggests a neutral-to-bullish bias at the moment as the MACD remains positively charged above its red signal line, while the RSI is currently pushing efforts for an upside reversal, but it is still clearly below its 50 neutral mark.
Should the return line around the 1.3165 support be penetrated, the price could initially test the 1.3105 barrier before heading towards the 1.2855 support, taken from the low in November 2020.
On the flip side, the target to the upside would be the 1.3370 resistance after the price overcomes the 20-day simple moving average (SMA) at 1.3260. Running slightly higher, the bulls will need to drive beyond the 23.6% Fibonacci retracement level of the down leg from 1.4248 to 1.3165 at 1.3425, to access the recent peak of 1.3510.
In brief, GBPUSD has been in a descending channel since June 1, while for any upside correction the price needs to jump above the 200-day SMA
