GBPUSD (4H) price bounces off the 161.8% extension

On the GBPUSD (4H) chart, price is trading close to the low of the bear channel after bouncing off the 161.8% (at 1.2690x) extension of a prior swing low. Since we are currently trading below the range lows, I would expect this area to act as resistance. The market is over extended and there is significant separation between price and the 50 SMA as well as the 20 SMA. Expect some ratracement back to those moving averages was well as the top of the bear channel.