GBP/USD: Setting the stage for an extension of the recent bearish trend

The cable´s overnight break below a short-term descending trend-channel confirmed a near-term bearish breakdown, as FXStreet’s Haresh Menghani notes. 

Key quotes

“GBP/USD's inability to build on the overnight rebound adds credence to the negative outlook. However, extremely oversold conditions warrant some caution before positioning for any further depreciating move.” 

“Any meaningful recovery back above the 1.1600 mark might now confront some fresh supply near the 1.1630 region and seems more likely to remain capped near the resistance at the 1.1700 round-figure mark.”

“On the flip side, the 1.1500-1.1490 region now seems to act as immediate support, which if broken decisively, should open the room for a further near-term downside for the major.”