GBPUSD is trending lower on its hourly chart, as it formed lower highs and lower lows inside a falling channel. Price is bouncing off support and could be due for a pullback to the top again.

Applying the Fibonacci retracement tool shows that this lines up with the 61.8% Fib around 1.3467. A shallow pullback could already find sellers at the 38.2% Fib around the mid-channel area of interest of 1.3425 or the 50% level near the 1.3450 minor psychological mark.

The 100 SMA is below the 200 SMA to confirm that the downtrend is more likely to resume than to reverse. The 100 SMA is also near the top of the channel to add to its strength as resistance. If any of the Fibs hold, GBPUSD could resume the slide to the swing low at 1.3357 or the channel bottom.

Stochastic is still pointing up to show that there is some bullish pressure left, but the oscillator is also nearing the overbought zone to reflect exhaustion. Turning lower would confirm that sellers are returning.

RSI has more room to climb before reaching the overbought area, so buyers might stay in control for a bit longer.

The dollar has been on strong footing these days, as the FOMC statement confirmed that the US central bank is moving closer to hiking interest rates. In addition, the advance US GDP for Q4 2021 indicated stronger than expected growth of 6.9% versus the projected 5.3% expansion.

The upcoming core PCE price index might seal the deal for March rate hike expectations since a pickup in price pressures would push the Fed to tighten soon. This could mean plenty of upside for the US dollar across the board, even against GBP whose central bank is pressured to tighten as well.

The US dollar could be more enticing than the British pound, though, since the pickup in US inflation is backed by stronger growth while the UK is facing stagflation woes.