GBP/USD Price Analysis: Bears roll sleeve up as cable skids below 50 and 200 EMAs

• Bears are likely to strengthen once the cable slips below 1.3536.
• After violating the 50 and 200 EMA towards the south, bears have taken control.
• The RSI (14) has slipped below its range of 40.00-60.00, which adds to the downside filters.

The GBP/USD has slipped near the shared low of Tuesday and February 16 at 1.3539 in the American session as the cable loses ground after slipping below the 50-period and 200-period Exponential Moving Averages (EMA) on Wednesday.

GBP/USD is oscillating in a narrow range of 1.3536-1.3548 in the early Asian session after a bloodbath, which indicates that investors are initiating offers on expectations of a further downward move.

On an hourly scale, GBP/USD has fallen on the face after the major retreats from Wednesday’s high at 1.3621. It is worth noting that the 50 and 200 EMAs are on the verge of shaping a bearish crossover, which would add to the downside filters.

The Relative Strength Index (RSI) (14) has breached its oscillation range of 40.00-60.00 on lower side, which claims for more weakness ahead, showing no signs of divergence and oversold.

Bears are now eyeing Wednesday’s low at 1.3536, as violation of the same will push the cable towards the February 11 low at 1.3514, followed by February 15 low at 1.3486.

On the flip side, bulls can show up if the cable overstep Wednesday’s high at 1.3621 decisively towards Friday’s high at 1.3643 and January 20 high at 1.3662 respectively.

GBP/USD hourly chart