GBP/USD: Technicals show bulls have the upper hand

GBP/USD is on the back foot as trades down -0.52% on the day to 1.2665 but Wednesday's 4-hour chart is showing bulls are still in the lead, Yohay Elam, an analyst at FXStreet, reports.

Key quotes

“Contrary to news developments, technicals remain upbeat. GBP/USD is benefiting from upside momentum and trades above the 50, 100, and 200 Simple Moving Averages. Moreover, the Relative Strength Index has dropped below 70, exiting overbought conditions.” 

“Support awaits at 1.2610, where the 50 SMA hits the price. The next cushion is at 1.2565, a swing low from mid-June. It is followed by 1.2530 and 1.2510.”

“The former triple top of 1.2670 returns to its role as resistance, followed by 1.2715, a stepping stone on the way up. July's high of 1.2770 and June's peak of 1.2815 are next.”