GBP/USD exits oversold conditions to venture further falls

GBP/USD recovered from under 1.29 to above 1.30 before consolidating its gains but Thursday's 4-hour chart is showing that cable exited oversold conditions and is struggling to keep pullbacks from six-week low, FXStreet’s analyst Yohay Elam briefs.

Key quotes

“The Relative Strength Index on the 4-hour chart is above 30 – outside oversold conditions and allowing for fresh falls. Momentum remains to the downside and GBP/USD is trading below the 50, 100, and 200 Simple Moving Averages.” 

“Support awaits at the daily low of 1.2970, followed by Wednesday's low of 1.2890. Next, 1.2845 and 1.2775 await sterling.”

“Resistance is at 1.2950, a cushion from late August, followed by 1.3115 and 1.3150, both stepping stones on the way up. The next level to watch is 1.3180, a swing low from last week.”