• The cable is consolidating near the psychological support of 1.3000.
• The greenback bulls are firmly defending the 20-EMA.
• A bearish range shift in the momentum oscillators RSI (14) is indicating weakness in the counter.

The GBP/USD pair is witnessing a nasty consolidation of around 1.3000 since Friday. A failed bull’s attack at the 200-period Exponential Moving Average (EMA) brought an intense sell-off in the asst from March 23 high at around 1.3300.

On a four-hour scale, the cable is auctioning in a narrow range of 12982-1.3057. It is worth noting that the asset is consolidating near its critical bottom, which is March’s low at 1.3001. Usually, a decent consolidation near the previous bottom level, which is also a psychological figure, signifies a double bottom formation. However, a break below the consolidation is also a certainty and the asset could enter into a prolonged bearish 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.

Pound bulls are also failing to overstep the 20-EMA, which is trading at 1.3032. Meanwhile, the Relative Strength Index (RSI) (14) has shifted into a bearish range of 20.00-40.00, which indicates a continuation of bearish bias.

A decisive plunge below Friday’s low at 1.2982 will trigger the 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 flip side, pound bulls may dictate the prices if the asset surpass April 7 high at 1.3106 decisively. This will push the pair towards the April 4 high at 1.3137. Breach of the latter will drive the asset towards the round level resistance at 1.3200.

GBP/USD four-chart