Red lines- bearish channel

Blue lines- Fibonacci retracement levels

GBPUSD is trading around 1.2199. Technically trend remains bearish. Price continues making lower lows and lower highs inside the red downward sloping channel. The pair briefly broke below the bearish channel yesterday and today is bouncing higher. In the near term trend the chances of a bounce higher have increased. The RSI has reached oversold levels in the Daily chart and current market conditions justify a bounce higher. Our first bounce target is the 38% Fibonacci retracement at 1.2350. As long as price remains inside the red channel, bears will remain in control of the trend. There is no bullish divergence in the daily chart, therefore our primary scenario remains bearish, with small bounces towards 1.23.