• GBPUSD posts bearish correction from 2½-year high
• Technical oscillators show negative momentum

GBPUSD has been plunging more than 1% so far today, dropping beneath the 1.3100 round number. The two-and-a-half-year high of 1.3433 acted as a turning point to the market, sending the price down to meet the 50-day simple moving average (SMA) at 1.3065. Even lower, the 1.3000 critical level may halt downside pressure. Moreover, the medium-term uptrend line at 1.2870 may be another strong support for traders.

However, if the market rebounds somewhere between the 50-day SMA and the 1.3000 handle then the price may move up to the 1.3265 resistance. Further increases could switch the near-term bias back to a positive one, hitting the previous peak of 1.3433 ahead of the February 2022 top of 1.3635.

According to technical oscillators, the stochastic dived into the oversold territory, while the RSI is crossing beneath the neutral threshold of 50.

All in all, GBPUSD has been in a negative retracement since September 26 but the broader outlook remains positive.