• GBPUSD in the red again today and registering a new 6-month low

• A strong bearish trend is in place since the July 14, 2023 high

• Momentum indicators clearly support the current downleg

GBPUSD is edging lower again today, recording the lowest print since March 27, 2023 and hovering around the 50% Fibonacci retracement of the June 1, 2021 – September 26, 2022 downtrend. It has been a one-way street move since the July 14, 2023 high as the bears have been dominating the price action.

And they continue to enjoy the strong support of the momentum indicators. The RSI is edging lower, recording its lowest print since September 2022. Additionally, the Average Directional Movement Index (ADX) continues to climb above its threshold, signaling the presence of a strong bearish trend in the market. More interestingly, the stochastic oscillator remains at the bottom of its oversold territory. It can stay there for a while, but the current situation could also point to some sell-off exhaustion building up.

Should the bears remain confident, they would have to clear the 50% Fibonacci retracement at 1.2287 and then have a go at overcoming the September 3, 2019 low at 1.1957. Even lower, they could have the chance of testing the support set by the 1.1759-1.1824 area, populated by the 38.2% Fibonacci retracement and the July 14, 2022 low.

On the flip side, the bulls are desperately trying to put a stop to the current bearish trend. They are keen on defending the 1.2287 level and they could then try to stage a rally towards the 1.2393-1.2431 area, set by the January 3, 2019 and the 200-day simple moving average (SMA). If successful, they could set sail for the 100-day SMA at 1.2644.

To conclude, with ample support from the momentum indicators, the bears are firmly in control and look determined to push GBPUSD towards the March 2023 lows.