GBPUSD bears approach strong support zone amid oversold RSI

GBPUSD marked the second consecutive weekly loss, following a U-turn from the 10-DMA on Thursday. That said, bears keep reins around the lowest levels last seen during late December 2021, backed by a downside break of a five-week-old descending trend line. As a result, the pair sellers eye further declines towards the 1.3170-60 area that comprises multiple lows marked during early December 2021. It should be noted, however, that the oversold RSI conditions may challenge the cable sellers, failing to which could direct the quote towards the 61.8% Fibonacci Expansion (FE) of June 2021 to January 2022 moves, near 1.3070. In a case where the pair remains bearish past 1.3070, the odds of the pair’s extended south-run towards the 1.3000 psychological magnet can’t be ruled out.

Meanwhile, corrective pullback needs validation from the 10-DMA, currently around 1.3420. Following that, the mid-February’s low near 1.3485 and the last monthly peak of 1.3645 will gain the market’s attention. It’s worth mentioning that January’s top of 1.3748 will act as the last defense for the GBPUSD pair sellers, following that the bulls will retake control of the pair.

Overall, GBPUSD has little room on the downside as RSI hints at a bounce from the key support zone.