GBP/USD Price Analysis: Prints 52-week low at 1.3001, bulls eye pullback around 1.2970

• Pound bulls are hoping for a pullback near the lower end of the falling channel.
• The RSI (14) is indicating more weakness but an oversold situation cannot be ruled out.
• Bears can continue holding grip if the cable slips below 1.2854.

The GBP/USD pair seems to be in a free-fall amid a broader risk-aversion theme in the market from the last few trading sessions. The pair has witnessed an open-test drive session on Monday as the major opened at 1.3037 and tested the upside at 1.3052. However, a follow-up selling triggered as investors capitalized on the pullback.

On a daily scale, the cable has witnessed carnage after slipping below the 8 December 2021 low at 1.3160. The major is auctioning in a falling channel formation in which pullbacks to the upper end of the falling channel are considered as a selling opportunity by the market participants. So a pullback is likely around 1.2965.

The 50-period and 200-period Exponential Moving Averages (EMAs) at 1.3405 and 1.3540 respectively have turned significantly lower, which indicates more weakness ahead.

The Relative Strength Index (RSI) (14) is oscillating in a range of 20.00-40.00, which indicates a continuation of weakness. However, an oversold situation could coincide with the lower end of falling channel into a potential pullback.

The cable may find significant bids near 1.2965, which will push the pair on the upside towards March 8 low at 1.3082 and 8 December 2021 low at 1.3160.

While bears can continue holding grip if the major slips below 2 November 2020 low at 1.2854. This will send the cable lower towards 30 September 2020 low at 1.2805 and 23 September 2020 1.2675.

GBP/USD daily chart