GBP/USD could target 1.1550 with a drop below 1.1620

GBP/USD has failed to shake off the bearish pressure. The near-term outlook suggests that the pair could suffer additional losses, FXSTreet’s Eren Sengezer reports.

Additional losses are likely

“The Relative Strength Index on the four-hour chart stays above 30, suggesting that there is more room on the downside before GBP/USD turns technically oversold. Additionally, the pair has returned within the descending regression channel coming from early August, confirming the sellers' willingness to retain control of the action.”

“1.1620 (multi-year lows, mid-point of the descending channel) aligns as first support. Below that level, 1.1600 (psychological level) could act as interim support before the pair could extend its losses toward 1.1550 (lower-limit of the descending channel).”

“On the upside, 1.1670 (upper-limit of the descending channel) forms key resistance. With a four-hour close above that hurdle, buyers could show interest and lift the pair toward 1.1700 (psychological level, 20-period SMA) and 1.1750 (static level, 50-period SMA).”