Title: GBP/USD Price Analysis: More downside looks certain below 1.1500
September 15, 2022 02:10 AM ET
The GBP/USD pair experienced a sharp decline after failing to break above the critical 1.1550 level in the Tokyo session. A pullback from Wednesday's low of 1.1480 was completed, and market participants initiated short selling by taking advantage of bargains.
On an hourly scale, a perpendicular selling move by the pound bulls is visible after failing to support the upward breakout of the ascending channel chart pattern. The upper part of the aforementioned chart pattern is placed from the September 2 high at 1.1588, while the lower part is plotted from the previous week's low at 1.1405.
The 20- and 50-period exponential moving averages (EMAs) at 1.1535 and 1.1555, respectively, have fallen, reinforcing the downside filters.
In addition, the Relative Strength Index (RSI) (14) is about to move into a bearish range of 20.00 to 40.00, which will trigger bearish momentum.
A decisive break below the psychological support of 1.1500 will take the cable to the September 4 low of 1.444, followed by the previous week's low of 1.1405.
On the contrary, a break above the August 31 high at 1.1694 will send the asset toward the August 30 high at 1.1761. If the latter is broken, the major will rise to its August 25 high of 1.1855.