GBPUSD – bears take a breather after heavy losses but hold grip

Cable consolidates above new three-month low at 1.3204, posted last Thursday (just ahead of 1.3193, Fibo 38.2% of 1.2100/1.3870 uptrend) after suffering heavy losses in past two weeks (down 2%).

Partial profit-taking reflects oversold daily studies, but upticks were so far limited with long upper shadow of Friday / today daily candles, pointing to headwinds that recovery attempts face.

Broken Fibo support at 1.3266 (76.4% of 1.3140/1.3675) now acts as solid resistance (as today’s probe above was so far short-lived) with initial signals of potential bull-trap developing on scenario of early recovery rejection.

Daily studies remain firmly bearish however RSI is just about to emerge from oversold territory and suggests that there is more space for recovery.

Firm break of 1.3266 to expose 1.3315 (Fibo 23.6% of 1.3675/1.3204) and 1.3350 (falling daily Tenkan-sen) which should ideally cap extended upticks.

The larger picture shows cable price near the bottom of broader range (1.3150 zone), violation of which would open way for stronger retracement of 1.2100/1.3870 (Jan 2025/Jan 2026 rally).

Res: 1.3274; 1.3315; 1.3350; 1.3384
Sup: 1.3222; 1.3193; 1.3150; 1.3080