GBP/USD fails at 1.2545, strong support line at 1.2250 protects downside

GBP/USD seesaws around 1.2450/55 as Friday's 4-hour chart is painting a mixed picture as cable failed to break above 1.2545 whereas the pair is well-supported while above the 1.2250 strong support line, FXStreet’s analyst Yohay Elam briefs.

Key quotes

“Cable bounced from the lows and topped the 50, 100, and 200 Simple Moving Averages on the 4-hour chart. Moreover, momentum remains to the upside. The bullish narrative is partially marred by the failure to break above 1.2545, the peak seen last week.” 

“Support awaits at the daily low of 1.2440, followed by 1.2360, which was a stepping stone in the recent recovery. The trough of 1.2250 is a strong support line.”

“Initial resistance awaits at Thursday's peak of 1.2530, followed by 1.2545 mentioned earlier. Next, 1.26 played a role in the past.”


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