GBP/USD: Downside momentum points lower, next support seen at 1.2380

GBP/USD is down -0.11% on a day to 1.2405 as the pair displays bearish signs. Furthermore, Friday's 4-hour chart is showing that momentum has turned to the downside, Yohay Elam, an analyst at FXStreet, reports.

Key quotes

“GBP/USD is capped by the downtrend support line that accompanies it since mid-June. It has recently dipped below the 200 Simple Moving Average on the 4-hour chart and momentum turned negative – bearish signs.”

“Support awaits at 1.2380, a recent trough, followed by 1.2340, Friday's low. Further down, 1.23 and 1.2250 date back to late May and early June.”

“Resistance is at 1.2470, a swing high from earlier this week which also converges with the 50 SMA. The next line to watch is 1.25, a psychologically significant level, and then 1.2550, the weekly high.”