#GBPUSD @ 1.14038 A drop below a fresh two-year low at 1.1350 will drag the asset into unchartered territory. (Pivot Orderbook analysis)

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• A drop below a fresh two-year low at 1.1350 will drag the asset into unchartered territory.
• Declining 10-and 20-EMAs adds to the downside filters.
• The RSI (14) is oscillating in the bearish range of 20.00-40.00.

The pair currently trades last at 1.14038.

The previous day high was 1.148 while the previous day low was 1.1351. The daily 38.2% Fib levels comes at 1.14, expected to provide support. Similarly, the daily 61.8% fib level is at 1.1431, expected to provide resistance.

The GBP/USD pair is displaying a less-confident pullback after a rebound from a fresh two-year low at 1.1350, recorded last week. The cable is expected to remain in the grip of bears and will display more weakness after dropping below the critical support of 1.1350.

On a weekly scale, the asset is hovering around a two-year low at 1.1350, which will remain critical support for the pound bulls. The conclusion of pullback former on a lower timeframe will resume the downside journey with more enthusiasm and zeal.

The 10-and 20-period Exponential Moving Averages (EMAs) at 1.1737 and 1.2027 are declining, which adds to the downside filters.

Also, the Relative Strength Index (RSI) (14) is oscillating in the bearish range of 20.00-40.00, which signals a continuation of the downside trend.

Should the asset drop below the fresh two-year low at 1.1350, greenback bulls will drag the cable towards the round-levels support of 1.1300. A slippage below the latter will drag the asset towards the 7 January 1985 low at 1.1245.

On the flip side, a break above Friday’s high at 1.1480 will send the asset towards Thursday’s high at 1.1542, followed by the round-level resistance at 1.1600.

Technical Levels: Supports and Resistances

GBPUSD currently trading at 1.14 at the time of writing. Pair opened at 1.1421 and is trading with a change of -0.18 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 1.1614, 50 SMA 1.1871, 100 SMA @ 1.2107 and 200 SMA @ 1.2704.

The previous day high was 1.148 while the previous day low was 1.1351. The daily 38.2% Fib levels comes at 1.14, expected to provide support. Similarly, the daily 61.8% fib level is at 1.1431, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 1.1354, 1.1288, 1.1225
• Pivot resistance is noted at 1.1484, 1.1547, 1.1614

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