Title: GBP/USD Price Analysis: On the cusp of free-fall, 1.1300 eyed
September 19, 2022 12:19 AM ET
The GBP/USD pair is showing a less confident pullback after rebounding from a new two-year low of 1.1350, recorded last week. Cable is expected to remain in the grip of bears and show more weakness after dropping below the critical 1.1350 support.
On a weekly scale, the asset is hovering around a two-year low at 1.1350, which will remain a critical support for the pound bulls. The conclusion of the pullback on a lower time scale will allow the journey downward to resume with more enthusiasm and zeal.
The 10- and 20-period exponential moving averages (EMAs) at 1.1737 and 1.2027 are falling, reinforcing the bearish filters.
In addition, the Relative Strength Index (RSI) (14) is hovering in the bearish range of 20.00–40.00, signaling a continuation of the downtrend.
If the asset falls below the new two-year low at 1.1350, the greenback bears will drag the cable toward the 1.1300 round support. A break below the latter will send the asset back to its January 7, 1985 low at 1.1245.
On the other hand, a break above Friday's high at 1.1480 will send the asset toward Thursday's high at 1.1542, followed by round-level resistance at 1.1600.