GBPUSD is trending higher inside a rising channel visible on its short-term time frames. Price is currently testing resistance and could be due for a pullback to the support levels marked by the Fibonacci retracement tool.

The 38.2% level is near the mid-channel area of interest around the 1.1600 major psychological mark. A larger pullback could reach the 50% level at 1.1500 mark or the 61.8% Fib at 1.1412, which is near the 100 SMA dynamic support.

The 200 SMA dynamic inflection point lines up with the bottom of the channel closer to 1.1300 and might be the line in the sand for a pullback. A break below this could set off a reversal from the uptrend.

The 100 SMA is above the 200 SMA to indicate that the path of least resistance is to the upside or that support levels are more likely to hold than to break. In that case, GBPUSD could soon make its way back up to the swing high at 1.1856 or higher.

Stochastic is indicating overbought conditions for now or exhaustion among buyers, so turning lower would mean that sellers have the upper hand. The oscillator has plenty of room to move south before reaching the oversold area.

Similarly RSI is just starting to turn lower, reflecting a pickup in selling pressure.

GBPUSD could take cues from the UK jobs data and CPI, as well as the BOE monetary policy report hearings later in the week. Weak employment figures could give the central bank reason to slow down its pace of tightening, as higher borrowing costs might wind up hurting overall growth when the labor market is shaky.

Meanwhile, stronger than expected CPI readings could spark expectations of another big interest rate hike from the BOE soon. The autumn forecast statement is also lined up this week and might spur additional volatility for the pound.