GBP/USD technical analysis: Oversold RSI, key support-line stop sellers from sub-1.2000 region

• GBP/USD bears struggle around key support-line amid oversold RSI.
• A pullback needs to cross 1.2250 in order to justify its strength while 1.1980 may lure sellers during further declines.

Despite trading near multi-month low, GBP/USD bears struggle to find their way as medium-term descending trend-line and oversold RSI limits further declines around 1.2100 heading into the London open on Friday.

The pair needs to close beneath yesterday’s low of 1.2079 in order to aim for January 2017 low near 1.1980 whereas October 2017 bottom around 1.1806 could be on sellers’ radar then after.

Given the oversold conditions of 14-bar relative strength index (RSI) may retrace to July-end high of 1.2250. However, pair’s further upside depends upon how well can it remains strong in the direction to July 17 low of 1.2382.

GBP/USD weekly chart

Trend: Pullback expected