GBP/USD PRICE ANALYSIS: POUND BULLS HOLD ABOVE 1.3000 BUT LACK COURAGE

• A barricade of the 200-EMA has dragged the asset to its critical bottom to near 1.3000.
• A bearish range shift in the RSI (14) is advocating the greenback bulls to dictate the asset.
• The trendline placed from 1.3300 will continue to act as a strong resistance.

The GBP/USD pair is oscillating in a wide range of 1.2989-1.3056 since Monday, struggling hard to secure 1.3000. The pair has witnessed a sheer downside after printing March highs to near 1.3300. The cable is eyeing a trigger that may help in finding a direction going forward. However, the asset is going to witness heavy volumes and wider ticks soon.

On a four-hour scale, the asset has witnessed a steep fall after failing to overstep the 200-period Exponential Moving Average (EMA) at 1.3300. The pair is auctioning near the critical previous bottom, which is March 14 low at 1.3000. Usually, a decisive break below a critical bottom pushes the asset into a prolonged negative trajectory. The trendline placed from March 23 high at 1.3300, adjoining the April 5 high at 1.3167 will act as a major barricade going forward.

The 50-EMA is scaling lower, which signals more weakness ahead. Adding to that, the Relative Strength Index (RSI) (14) has shifted into a bearish range of 20.00-40.00, which indicates the continuation of a bearish move.

A confident drop below Friday’s low at 1.2982 will activate greenback bulls, which will drag the asset towards the 2 November 2020 low at 1.2854, followed by round level support at 1.2800.

On the contrary, sterling bulls may dictate the prices if the asset oversteps April 7 high at 1.3106 decisively. This will push the pair towards the April 4 high at 1.3137. A breach of the April 4 high will send the asset towards the round level resistance at 1.3200.

GBP/USD FOUR-HOUR CHART