GBP/USD Price Analysis: A slippage below 61.8% Fibo retracement unleashes cable for new lows

• A slippage below 61.8% Fibo retracement confirms more downside move.
• The 10- and 20-EMAs are scaling lower, which adds to the downside filters.
• A bearish range shift by the RSI (14) signals more downside ahead.

The GBP/USD pair has refreshed its two-year low after hitting a low of 1.2107 in the late New York session. The pound bulls have displayed a sheer downside move after violating its prolonged consolidation formed in a 1.2430-1.2600 range from the first day of June.

On the weekly scale, the cable has settled below the 61.8% Fibonacci retracement (which is placed from March 2020 low at 1.1412 to February 2021 high at 1.4243) at 1.2500. Also, the sustainability below the supply zone at 1.2140-1.2250 will remain a major hurdle for the pound bulls.

Declining 10- and 20-period Exponential moving Averages (EMAs) at 1.2528 and 1.2788 respectively adds to the downside filters.

Meanwhile, the Relative Strength Index (RSI) (14) has shifted into a bearish range of 20.00-40.00, which signals that the downside momentum is intact.

Should the asset displays a pullback move towards the above-mentioned supply zone, the greenback bulls will find it an optimal selling opportunity and will drag the asset towards the 18 May 2020 low at 1.2075. A breach of the latter will unleash the asset to find a cushion around the psychological support at 1.2000.

On the flip side, the pound bulls could regain strength if the asset oversteps May 27 high at 1.2667. An occurrence of the same will drive the asset to near 20-EMA at 1.2780, followed by 50% Fibo retracement at 1.2836.

GBP/USD weekly chart