Technically, the price dropped beneath the 20- and 40-period simple moving averages (SMAs), challenging the Ichimoku cloud in the daily timeframe. The RSI is standing below its 50 neutral mark but is flattening, while the MACD oscillator is remaining below its trigger line and near the zero level, confirming the recent bearish view.
Further declines could meet a strong barrier between the 38.2% Fibonacci retracement level of the upward wave from 1.1957 to 1.3515 around 1.2920 and the 1.2900 support, taken from the latest low on December 23. More losses could send cable below the supportive uptrend line, hitting the 1.2820 mark, registered on November 22.
Alternatively, a rebound on the 38.2% Fibo (1.2920) and a jump above the SMAs could open the door for the 23.6% Fibonacci of 1.3145, around the upper surface of the Ichimoku cloud. Even higher, the 1.3210 resistance, which coincides with the blue Kijun-sen line could be another crucial level, before a potential rally towards the 1.3285 barrier.
Briefly, GBPUSD could lose further steam in the short-term, touching the ascending trend line, before reversing higher again.