The British pound sterling reversed declines and is now currently trading near the previous level of 1.3500. As noted previously, if resistance is established here, then the GBPUSD could be heading lower.
For the moment, the Stochastics oscillator remains settled above the oversold levels. This could potentially signal room for further upside momentum.
But if the price action fails to post further gains, we could expect to see a retracement once again.
In the medium term, the GBPUSD remains within the sideways range of 1.3500 and 1.3122. To the downside, the December 22 swing lows near 1.3305 could hold out as support.