- Failing to surpass the 20-EMA will bring more pain for the sterling bulls.
- The RSI (14) has tumbled below 40.00, showing no signs of divergence and an oversold situation.
- An establishment below the symmetrical triangle will fetch significant offers for the cable.
The GBP/USD pair has sensed selling pressure to near 1.3167 after remaining choppy in the first three trading sessions of April. The 20-period Exponential Moving Average (EMA) at 1.3095 has acted as a major barrier for the pound bulls.
On a four-hour scale, the cable has comfortably established below the symmetrical triangle formation. This is going to bring significant volumes in the asset going forward. The upper boundary of the chart pattern is placed from March 25 high at 1.3225 while the lower boundary is marked from March 15 low at 1.3000.
The 50-EMA is scaling lower at 1.3114, which adds to the downside filters. Adding to that, the Relative Strength Index (RSI) (14) has plunged below 40.00, which signals more pain ahead. The RSI (14) is not displaying any sign of divergence and oversold scenario.
A slippage below Tuesday’s low at 1.3067, will strengthen the greenback bulls and the pair may hit the downside to near March 16 low at 1.3036, followed by the psychological support at 1.3000.
On the flip side, after overstepping the 50-EMA at 1.3114, the asset will march towards Tuesday’s high at 1.3167. Breach of the latter will drive the asset towards the round level resistance at 1.3200.
GBP/USD four-hour chart
-637848876616301048.png)