GBP/USD Price Analysis: Bears are firmer below 61.8% Fibo retracement, 1.3000 eyed
- A slip below 61.8% Fibo retracement at 1.3283 has established a bearish tone.
- The cable has been dumped almost 4% in the past 15 trading sessions.
- The RSI (14) has shifted into a bearish range of 20.00-40.00, which adds to the downside filters.
The GBP/USD pair has witnessed carnage amid broader risk-off impulse in the market. The pound bulls have been dumped almost 4% in the past 15 trading sessions. On Friday, the cable has registered a fresh 52-week low at 1.3082. The major prepares for a fresh weakness after slipping below 20 December 2021 low at 1.3174.
On the daily scale, GBP/USD has slipped below 61.8% Fibonacci retracement, which is placed from 23 September 2020 low at 1.2675 to 24 February 2021 high at 1.4243. Usually, a plunge below the 61.8% Fibo retracement results in a continuation of weakness and re-test of initial lows, which is the 23 September 2020 low at 1.2675.
The 20-period and 200-period Exponential Moving Averages at 1.3325 and 1.3546, respectively, are scaling lower, which adds to the downside filters.
Meanwhile, the Relative Strength Index (RSI) (14) has shifted its range from 40.00-60.00 to 20.00-40.00, which is a bearish range and every pullback is considered as a selling opportunity.
For more plunge, the cable needs to skid below Friday’s low at 1.3082, which will drag it lower to the psychological support of 1.3000. A breach of the latter will send the pair towards the 2 November 2020 low at 1.2854.
On the flip side, bears can lose control if GBP/USD oversteps Thursday’s high at 1.3195. This will trigger the pound bulls and the cable can shift higher near 61.8% Fibo retracement at 1.3283, followed by 20-period EMA at 1.3325.
GBP/USD daily chart
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Author
Sagar Dua
FXStreet
Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.
