GBP/USD reversed an early dip to the 1.2360-55 region and now trades at 1.24. Yohay Elam, an analyst at FXStreet, notes that bears remain in control of the cable and points to the 1.2340 support.
“Momentum on the 4-hour chart remains to the downside and the 50 Simple Moving Average recently broke below the 200 SMA, a bearish sign. The Relative Strength Index is back to balanced levels after flirting with oversold conditions.”
“Support awaits at 1.2340, a support line from mid-June, followed by 1.23, a round number that provided support in late May. It is followed by 1.2250 – now a double-bottom after preventing further falls on Tuesday.”
“Resistance is at 1.24, a stubborn cap, and where the downtrend resistance line hits the price. The next levels to watch are 1.2450 and 1.25.”
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