GBP/USD technical analysis: Tests long-term falling wedge support amid oversold RSI

• 25-month old descending trend-line, forming part of a falling wedge, can limit GBP/USD declines amid oversold RSI conditions.
• 1.2580, 23.6% Fibonacci retracement limit immediate advances.

Despite falling to the lowest since early 2017, the GBP/USD’s further declines seem confined as it takes the rounds to 1.2365 while heading into the UK open on Monday.

A downward sloping trend-line since June 2017, at 1.2363 now, offers key immediate support for the pair, a break of which can defy the long-term bullish formation and can further please bears with March 2017 low around 1.2110.

Also challenging the declines is oversold conditions of 14-day relative strength index (RSI).

On the upside, the quote should successfully overcome mid-month tops close to 1.2580 in order to push buyers towards 23.6% Fibonacci retracement of 2015 swing high to 2016 swing low, at 1.2773.

GBP/USD weekly chart

Trend: Bearish