•  GBPUSD’s bearish wave may come to an end soon
• Stochastics and RSI indicate upside retracement

GBPUSD is still retreating from the two-and-a-half-year high of 1.3433, with the next strong key level coming from the 1.3000 psychological mark. The price also dropped beneath the 20- and 50-day simple moving averages (SMAs), and if the bearish correction continues, the pair may lead toward the medium-term ascending trend line at 1.2900. A penetration of the diagonal line could take the bears towards the 200-day SMA at 1.2790.

On the flip side, a potential bounce off the 1.3000 level could turn the outlook positive again in the short term, meeting the 20-day SMA at 1.3230 and the 1.3265 barrier. Above that, the previous peak of 1.3433 could pose another significant challenge for the bulls.

According to technical oscillators, both the RSI and the stochastic are confirming the recent weak negative momentum, giving the chance for an upside move. The stochastic posted a bullish crossover within its %K and %D lines in the oversold area, which is a bullish sign, while the RSI is flattening below the 50 level.

In summary, GBPUSD has been negative in the near-term, but there is a sign that the bearish wave is ending. However, the longer-term outlook remains positive as long as it remains above the ascending trend line and, crucially, above the 200-day SMA.