GBP/USD Descending Channel Dominates Bearish Outlook

Chart Analysis:
The GBP/USD pair continues to slide within a well-established descending channel, with bearish momentum intensifying as it tests key support levels.

1️⃣ Descending Channel:

The pair remains firmly within the red-shaded descending channel, reinforcing the dominant downtrend.
Price is approaching the lower boundary of the channel, a critical area to watch for potential rebounds or further breakdowns.

2️⃣ Key Support Levels:

Immediate support lies at 1.2290, currently being tested.
Further downside could target the next key support at 1.2037 if bearish pressure persists.

3️⃣ Moving Averages:

50-day SMA (blue): Trending downward at 1.2664, reflecting short-term bearish sentiment.
200-day SMA (red): Sloping lower at 1.2804, confirming a broader bearish trend.

4️⃣ Momentum Indicators:

RSI: At 32.8, nearing oversold conditions but still aligned with the downtrend.
MACD: Bearish momentum remains strong, with the MACD line deeply negative and extending lower.

What to Watch:

A break below 1.2290 could pave the way for a decline toward 1.2037.
Any corrective rallies within the channel may face resistance at the midline or upper boundary.
Oversold RSI levels could signal a temporary pullback, but momentum remains bearish.

GBP/USD remains under intense selling pressure as it trends lower within the descending channel. Traders should monitor key levels for potential breakout or continuation signals.

-MW