GBP/USD traded above 1.28 in mid-June – and has been struggling to recapture 1.23 in recent hours – a 500+ pip plunge as Tuesday's 4-hour chart is showing bears are still in control, FXStreet’s analyst Yohay Elam reports.
“GBP/USD is suffering from downside momentum on the 4-hour chart and the Relative Strength Index (RSI) is still above 30 – outside oversold conditions. The cable is trading below the 50, 100, and 200 Simple Moving Averages.”
“Critical support awaits at 1.2250, which is the recent trough – the lowest since late May. It is followed by 1.2210 and 1.2165, levels that were relevant last month.”
“Some resistance awaits at 1.23, followed by 1.2240, a support line from mid-June. The next cap is 1.24, a round number and also where the 50 SMA hits the price.”
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