The GBP/USD pair is retracing its recent losses, trading around 1.3000 during the Asian hours on Tuesday. Technical analysis indicates that the pair is consolidating within a descending channel pattern, suggesting a bearish outlook.
The Moving Average Convergence Divergence (MACD) indicator signals bearish momentum, with the MACD line below the centerline and the signal line. Additionally, the 14-day Relative Strength Index (RSI) remains below 50, reinforcing the prevailing bearish sentiment.
On the downside, GBP/USD may test the lower boundary of the descending channel near 1.2810, followed by the psychological level of 1.2800. A break below this threshold could increase downward pressure, potentially reaching the three-month low of 1.2665 from August 8.
For resistance, the pair could face challenges at the upper boundary of the descending channel, around the nine-day Exponential Moving Average (EMA) at 1.3040. A sustained move above this level could pave the way for a test of the psychological level of 1.3100.
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