GBP/USD Price Analysis: Keeps bounce off 1.1400 key support amid oversold RSI

• GBP/USD stays defensive after bouncing off the lowest levels since 1985.
• Four-month-old bearish channel’s bottom adds strength to the 1.1400 support.
• Bearish MACD signals keep sellers hopeful, RSI hints at corrective pullback.
• Buyers need validation from 29-month-old horizontal resistance to keep reins.

GBP/USD clings to mild losses around 1.1510 while fading the previous day’s bounce off the 37-year low during Thursday’s Asian session.

In doing so, the Cable pair justifies bearish MACD signals while staying inside a downward sloping trend channel since May.

However, the oversold RSI and lower line of the stated channel, as well as the pair’s hesitance in breaking the 1.1400 during 2020, as well as on the previous day, seem to suggest a short-term rebound of the GBP/USD prices.

That said, July’s low of 1.1760 gained the immediate attention of traders before the multi-day-old channel’s upper line, around 1.2080 by the press time.

It’s worth noting, though, that a horizontal area comprising multiple levels marked since April 2020, around 1.2650-75, will be a tough nut to crack got the pair buyer and holds the key for their control-taking ceremony.

Alternatively, pullback moves need to break the 1.1400 support level to recall the bears.  Following that, a quick slump to the January 1985 peak of 1.1300 can’t be ruled out.

Overall, GBP/USD remains on the bear’s radar but a short-term rebound can’t be ruled out.

GBP/USD: Weekly chart

Trend: Further recovery expected