GBP/USD Price Analysis: More weakness seems inevitable below 1.1500
|- The falling channel formation has already underpinned the greenback bulls.
- Huge deviation in declining 20-and 50-EMAs indicates the strength of the downside momentum.
- A downside move below 1.1500 may drag the cable towards 1.1400.
The GBP/USD pair is displaying a lackluster performance in the Asian session as investors are preparing for the US Nonfarm Payrolls (NFP) event. The cable is oscillating in a narrow range of 1.1540-1.1560, however, the downside remains favored amid an overall bearish context. Earlier, the asset refreshed its 29-months low after declining to near the psychological support of 1.1500.
On a four-hour scale, the asset is auctioning a Falling Channel chart pattern that advocates a downside bias. The upper portion of the above-mentioned chart pattern is placed from August 10 high at 1.2277 while the lower portion is plotted from August 5 low at 1.2003. The cable has displayed a less-confident pullback after sensing a cushion around the lower portion of the chart pattern.
The 20-and 50-period Exponential Moving Averages (EMAs) at 1.1616 and 1.1709 respectively are scaling towards the south, which adds to the downside filters.
Meanwhile, the Relative Strength Index (RSI) (14) is oscillating in a bearish range of 20.00-40.00, which has already triggered a fresh downside impulsive wave.
A less-confident pullback move to near 10-EMA at 1.1575 will activate a bargain sell. An occurrence of the same will drag the asset towards psychological support at 1.1500. A breach of the latter will drag the cable towards the round-level support at 1.1400.
On the flip side, a break above Wednesday’s average price at 1.1650 will send the asset towards the round-level resistance at 1.1700, followed by Tuesday’s high near 1.1760.
GBP/USD four-hour chart
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