GBP/USD Technical Analysis: Death-cross on 1-hourly chat points to an eventual bearish break through a descending trend-channel

   “¢   The pair failed to capitalize on the overnight goodish rebound from a support marked by the lower end of a short-term descending trend-channel formation on the 1-hourly chart and met with some fresh supply on Wednesday.

   “¢   The pair weakened back below mid-1.3100s, albeit now seems to have found some support and was seen consolidating in a range around 23.6% Fibonacci retracement level of the recent upsurge to over seven-month tops.

   “¢   The fact that the pair remains well below important intraday moving averages – 50, 100 & 200-hour SMAs, coupled with the death cross chart pattern on the 1-hourly chart clearly points to persistent selling bias.  

   “¢   Moreover, technical indicators on hourly charts have been drifting into negative territory and further add credence to the bearish outlook, though bullish oscillators on the daily chart warrant some caution before placing aggressive bets.

   “¢   Hence, traders are likely to wait for a convincing break through the mentioned trend-channel support, currently near the 1.3085-80 region before positioning for an extension of the corrective slide towards the key 1.30 psychological mark.

GBP/USD 1-hourly chart