GBP/USD: Bounce bank on the cards

GBP/USD Tuesday’s four-hour chart is pointing to oversold conditions. Yohay Elam, an analyst at FXStreet, looks at the technical picture of the cable.

Key quotes

“The Relative Strength Index on the four-hour chart is below 30, pointing to oversold conditions.”

“Momentum remains to the downside and the currency pair trades below the 50, 100, and 200 Simple Moving Averages.”

“The daily low of 1.2150 provides immediate support. The next levels to watch are 1.2080 and 1.2015, both dating back to September.” 

“Resistance awaits at 1.2275, the daily high, followed by 1.2370 and 1.2430, both stepping stones on the way down.”