GBP/USD continues to slide for the third consecutive day, trading around 1.2490 during the Asian session on Friday. Technical analysis suggests an ongoing bearish trend, with the pair confined within a descending channel pattern on the daily chart.
The 14-day Relative Strength Index (RSI) has fallen to near the 30 level, reinforcing the bearish momentum. A decisive break below the 30 threshold would signal an oversold condition, potentially setting the stage for an upward correction in the near term.
On the downside, the GBP/USD pair is hovering near its seven-month low of 1.2487, recorded on November 22. A break below this support could accelerate the bearish move, with potential for the pair to test the yearly low of 1.2299, last seen on April 22, followed by the lower boundary of the descending channel at 1.2260.
Resistance levels are seen at the nine-day Exponential Moving Average (EMA) at 1.2606 and the 14-day EMA at 1.2635, which aligns with the upper boundary of the descending channel. A successful break above this region could signal a weakening of the bearish bias, paving the way for a potential rally toward the five-week high of 1.2811, marked on December 6.
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