GBPUSD has been trending lower within a descending channel since early February, and price has recently broken below the channel’s lower boundary following a sharp selloff.

The pair is currently hovering around the 1.3261 level, sitting just above the swing low at 1.3218, which could attract some dip buyers looking for a short-term bounce. If this floor manages to hold, GBPUSD could stage a corrective rally back toward the Fibonacci retracement levels drawn from the recent swing high to the swing low.

The 38.2% Fib is located at 1.3318, which lines up with a former support-turned-resistance area. A more sustained bounce could reach the 50% level at the 1.3350 minor psychological mark, while a larger correction might test the 61.8% Fib at 1.3380.

These levels could also coincide with the broken channel boundary, potentially reinforcing them as ceilings where sellers could re-emerge to resume the downtrend.

The 100 SMA is below the 200 SMA to confirm that the path of least resistance is to the downside, and the gap between the indicators remains wide, reflecting sustained bearish pressure. Price is trading well below both moving averages, which could act as dynamic resistance on any corrective bounce.

Stochastic has dipped into the oversold region and is now showing early signs of turning higher, suggesting that sellers may be running out of steam for now. A crossover in the oversold zone would hint at a short-term corrective move, though the oscillator has pulled back from this area before without producing meaningful recoveries.

RSI is also hovering near oversold territory, giving some room for a relief bounce. However, the oscillator has yet to turn decisively higher, so bearish pressure could still persist before buyers make a meaningful return.

A failure to hold above the 1.3218 swing low could open the door to a deeper drop toward the 1.3200 major psychological handle or lower.