From last 1 week, GBPUSD shows loss of 2.69%, a drop from highs of 1.4459 to the current 1.4070 levels.
Day highs (1.4152) were not able to sustain and inching towards support zones at 1.4070 levels.
During the intraday sessions with sentiments mounting the pair has been able to break below these supports at 1.4070.
Gravestone evidenced their effects; now break below support most likely.
RSI: Currently, (14) trending below 42 levels converging to the price dips as there is huge selling momentum, lower lows are evidenced, on closing basis movement should be closely watched if it suggests downward signals.
Stochastic: As slow noises with %D line cross over even below oversold levels (current %D line flashes at 83.5125), it is an alarm that bears trying to take over the ongoing declining trend.
What could we interpret price line when oscillator remains in & around oversold zone since August 2015.
The current prices way below 7 & 21 moving average curves, as another lagging indicator ( ) is also showing crossover, hence, downtrend seems to be robust.
Trade tips: As a result of above technical reasoning we see the pair likely to head towards 1.40 and below levels and 1.38 by Q2 end, so advisable to stay short in mid-month for these targets.