GBP/USD: Below 1.2460 points to the downside, next support seen at 1.2405

GBP/USD is reaching the end of the week on the back foot, trading around the 1.210 level, as Friday's 4-hour chart is pointing to further falls, FXStreet’s analyst Yohay Elam reports.

Key quotes

“The 1.2460 is proving a strong separator of ranges – it provided support early in the week and now caps any gains. Without overcoming that line, GBP/USD suffers further falls. Momentum on the 4-hour chart is to the downside and the Relative Strength Index is above 30 – outside oversold conditions.”

“The cable is struggling to hold onto the 200 Simple Moving Average and falling below it would also trigger further losses.”

“Support awaits at 1.2405, the daily low, followed by 1.2360, which was a resistance line in late May. The next lines are 1.23 and 1.2250.”

“Resistance above 1.2460 awaits at 1.25, which provided support this week, and 1.2560, a resistance line before the recent fall.”