- The cable is testing the yearly lows at 1.3000.
- For further movement in the asset, the momentum oscillator RSI (14) is advocating bears.
- The 200-EMA has acted as a major barricade for the pair.
The GBP/USD pair has remained in a bearish trajectory after printing March highs to near 1.3300. The asset has witnessed a sheer fall and is auctioning near the yearly lows at around 1.3000. The asset is at a make-or-break level, however, odds are favoring a break going forward.
On a four-hour scale, the cable is testing the previous major bottom printed on March 14 at 1.3000. It is worth noting that the asset has sensed a textbook kind of resistance from the 200-period Exponential Moving Average (EMA), which is currently placed at 1.3190. The asset is trading below 20-period EMA to near 1.3050, which adds to the downside filters.
The Relative Strength Index (RSI) (14) has been comfortably established in a bearish range of 20.00-40.00, which indicates the upper hand of the might greenback going forward.
A decisive slippage below the previous week’s low at 1.2982 will trigger a bearish setup for the asset. A drop below the previous week’s low will drag the asset towards the 2 November 2020 low at 1.2854, followed by round level support at 1.2800.
On the flip side, cable bulls may regain control if the asset oversteps April 7 high at 1.3106 confidently. This will drive the pair towards the April 4 high at 1.3137. Breach of the latter will send the asset towards the 200-EMA at 1.3190.