GBPUSD has been climbing inside an ascending channel since early August, with the pair recently pulling back from the channel top near 1.3674 after tagging a fresh swing high.

The pair is currently testing the confluence of the 38.2% Fibonacci retracement level at 1.3524 and the 100 SMA, which might be enough to attract dip buyers back into the mix.

A deeper correction could still push price down to the 50% Fib at 1.3477, which lines up closely with the 100 SMA and the previous consolidation zone from early August. If that fails to hold, the 61.8% Fib at 1.3431 could be the line in the sand for a bullish pullback, keeping the longer-term channel intact.

Should any of these levels hold as support, GBPUSD could resume its climb toward the swing high at 1.3674 or higher, potentially setting up a test of the channel top once more. A break below the Fibs and the rising channel bottom, on the other hand, could open the door to a slide toward the 100% level at 1.3281 or lower.

Looking at the moving averages, the 100 SMA remains above the 200 SMA, confirming that the path of least resistance is still tilted to the upside, even as the gap between the two continues to narrow amid the ongoing pullback.

Stochastic has dropped into the oversold zone, reflecting exhaustion among sellers and hinting that a bounce could be in the cards if the oscillator turns back up from here. RSI is also sliding but still has some room before reaching oversold territory, so price could keep drifting lower for a bit while sellers remain in control.

Overall, as long as the ascending channel and key Fibonacci levels hold up as support, GBPUSD bulls may still have the opportunity to regroup and extend the broader uptrend in the sessions ahead. Warsh’s Jackson Hole testimony may have lifted September tightening odds, though he still refused to drop clear forward guidance on the next hike.