• A Falling Channel formation indicates that the broader context of cable is weak.
• Declining 20-and 50-EMAs signal more weakness ahead.
• A bearish range shift by the RSI (14) adds to the downside filters.

The GBP/USD pair has turned sideways after witnessing a steep fall below the crucial support of 1.1700 on Tuesday. The cable is auctioning in a narrow range of 1.1646-1.1670 after a short-lived pullback from Tuesday’s low at 1.1626. The pullback move looks less confident and is likely to turn into a fresh fall after the momentum oscillators will turn overbought.

The formation of a Falling Channel chart pattern on an hourly scale is indicating more downside ahead. The upper portion of the above-mentioned chart pattern is placed from August 11 high at 1.2249 while the lower portion is plotted from August 5 low at 1.2003.

A decent deviation in declining 20-and 50-period Exponential Moving Averages (EMAs) at 1.1677 and 1.1702 respectively is indicating more weakness ahead.

Also, the Relative Strength Index (RSI) (14) has shifted into the bearish range of 20.00-40.00, which indicates more downside ahead.

A pullback move towards the 20-EMA at 1.1677 will trigger a bargain sell and will drag the asset towards Tuesday’s low at 1.1626, followed by 19 March 2020 low at 1.1472.

Alternatively, the pound bulls could regain their mojo and may drive the asset higher towards August 3 low and high at 1.2135 and 1.2200 after violating the psychological resistance of 1.2000 decisively.

GBP/USD hourly chart