GBP/USD Technical Analysis: Bears flirting with 1.2900 handle, downside seems limited

• GBP/USD once again started retreating from descending trend-channel resistance.
• Dip-buying is likely to emerge near weekly lows and help limit any meaningful slide.

The GBP/USD pair on Thursday failed to capitalize on its early uptick to one-week tops and started retreating from a resistance marked by the top end of over one-month-old descending trend-channel.

The pair remained depressed on the last trading day of the week and is currently placed near the 1.2900 handle, which coincides with 200-hour SMA and should act as a key pivotal point for intraday traders.

Meanwhile, technical indicators on the 4-hourly chart have been losing traction and just started gaining downward momentum on the 1-hourly chart, supporting prospects for further intraday weakness.

However, oscillators on the daily chart maintained their bullish bias and thus, warrant some caution for aggressive bearish traders or positioning for any sharp near-term depreciating move for the major.

Hence, any subsequent slide below the 1.2900 round-figure mark might continue to attract some dip-buying and help limit the downside near the weekly lows support, around the 1.2830-25 region.

Failure to defend the mentioned support might turn the pair vulnerable to break below the 1.2800 handle and aim towards challenging the lower end of the trend-channel, currently near mid-1.2700s.

On the upside, any positive move might continue to confront some supply near the trend-channel resistance, around the 1.2945-50 region, which if cleared might negate any near-term bearish bias.

Sustained strength above the mentioned barrier might prompt a fresh bout of a short-covering move and has the potential to lift the pair back towards reclaiming the key 1.30 psychological mark. 

GBP/USD 4-hourly chart