GBPUSD has been trending lower within a descending channel on the short-term time frame, with the pair recently finding support near the channel bottom and support at 1.3260.

Price is currently attempting a bounce from this area, and a sustained recovery could lead to a corrective move up toward the key Fibonacci retracement levels overhead.

The Fibonacci retracement tool drawn from the recent swing high to the swing low highlights where sellers could be waiting to cap the recovery. The 38.2% Fib is at 1.3388, which is the closest hurdle and roughly where price is hovering at 1.3368.

A move above this level could open the door to the 50% Fib at 1.3427, then the 61.8% level at 1.3466. A larger correction could reach the 100% Fib at 1.3593, which aligns closely with the descending channel top and could be the line in the sand for a bearish pullback.

The 100 SMA is below the 200 SMA to confirm that the path of least resistance is to the downside, and that the selloff is more likely to resume than to reverse outright. Both indicators are sloping lower and converging with the channel resistance, adding to the confluence of barriers bulls would need to overcome.

Stochastic has turned higher from the oversold region, reflecting exhaustion among sellers and a return in bullish pressure. The oscillator has plenty of room to climb before reaching overbought territory, suggesting the corrective bounce could have legs.

RSI is also pointing north from near the oversold area, supporting the case for further upside in the near term. However, if either oscillator rolls over before price reaches the upper Fibs, that could be an early sign that sellers are eager to reassert control and push GBP/USD back toward the channel lows or lower.

GBPUSD could take cues from the US NFP, as expectations are running high for an upbeat result that could reinforce hawkish Fed expectations and dollar strength.