GBPUSD Consolidates Following Sharp Decline, Bears Retain Control

Cable is consolidating above last Thursday’s three-month low of 1.3204, posted just ahead of the key 38.2% Fibonacci retracement of the 1.2100 to 1.3870 rally at 1.3193, following a sharp two-week decline of around 2%.

A wave of profit-taking from short positions has helped stabilize the pair, as daily indicators remain in oversold territory. However, recovery attempts have so far lacked momentum, with long upper shadows on Friday’s and today’s daily candles highlighting persistent selling pressure and strong headwinds on rallies.

The previously breached Fibonacci support at 1.3266, representing the 76.4% retracement of the 1.3140–1.3675 advance, has now turned into firm resistance. Today’s brief move above this level quickly faded, raising the risk of a developing bull trap should the recovery continue to lose traction.

While the broader technical picture remains decisively bearish, the RSI is beginning to emerge from oversold levels, suggesting scope for a deeper corrective rebound in the near term.

A sustained break above 1.3266 would open the way toward 1.3315, the 23.6% retracement of the 1.3675–1.3204 decline, followed by 1.3350, where the falling daily Tenkan-sen is expected to reinforce resistance and limit stronger upside extensions.

From a broader perspective, sterling remains near the lower boundary of its wider trading range around the 1.3150 zone. A decisive break below this area would signal a deeper correction of the major 1.2100 to 1.3870 advance recorded between January 2025 and January 2026.

Res: 1.3274; 1.3315; 1.3350; 1.3384
Sup: 1.3222; 1.3193; 1.3150; 1.3080