GBPUSD violently corrected lower early on Friday, breaking below the critical 1.1400 pandemic low where the bears stopped the 2022 downtrend on September 7.
The MACD is extending its bearish wave below its red signal and zero lines on the four-hour chart, while the RSI and the stochastic are negatively charged near their oversold levels, suggesting a cautiously bearish bias.
The the lower limit of a channel is now a goal at 1.1343. A continuation lower could pause near the psychological level of 1.1200 before a more aggressive drop occurs to the number 1.0890 – this being the 261.8% Fibonacci extension of the latest bullish correction.
On the top, bounce over the close 1.1465 a limiting zone could see the pair test the 20- and 50-period simple moving averages (SMAs) within the 1.1530 – 1.1565 area. Break higher could pave the way to the 1.1713 – 1.1760 resistance territory. If this also gives way, the door will open for the 200-period SMA at 1.1828.
In summary, GBPUSD is currently trading bearish at a make-or-break point. A decisive close below 1.1343 could confirm further losses ahead.