GBP/USD Price Analysis: Pound bulls to find offers on testing the 20-EMA

• The cable has printed a fresh yearly low at 1.2325.
• Momentum oscillator RSI (14) has shifted into a bearish range of 20.00-40.00.
• A pullback towards the 20-EMA will be an optimal sell for investors.

The GBP/USD pair is experiencing a weak rebound after printing a fresh yearly low of 1.2325 on Thursday. The cable witnessed sheer downside after slipping below the previous week’s low of 1.2411.  The asset has surrendered its crucial support of 1.2400 and has been exposed to more downside risks.

A decisive downside move below the previous week’s low at 1.2411 is likely to be re-tested for more short buildups. The pound bulls lost their strength after a bear cross of 20- and 50-period Exponential Moving Averages (EMAs) at 1.2532.

The Relative Strength Index (RSI) (14) has shifted into the bearish range of 20.00-40.00, which signals a fresh leg of weakness ahead.

Should the asset test the 20-EMA at 1.2420, it will be an optimal bargain opportunity for the market participants to initiate short positions, which will drag the asset towards the fresh yearly lows and 29 June 2020 low at 1.2325 and 1.2252 respectively.

On the flip side, pound bulls may dominate the asset if it oversteps Wednesday’s high at 1.2638. This will send the asset towards the round level resistance at 1.2700, followed by April 26 high at 1.2773.

GBP/USD hourly chart