Wednesday’s four-hour GBP / USD chart shows a bounce on the double bottom, as FXStreet analyst Yohay Elam notes.
GBP / USD hit 1.2250, creating a double floor after reaching this level in late April. This upward movement is countered by the bearish momentum on the four-hour chart and by the currency pair setting highs and lows lower. ”
The cable is traded under the simple moving averages of 50, 100 and 200 and the relative strength index remains above 30 – outside the oversold conditions. “
Support is waiting at 1.2270, which was a low last week. It is followed by 1.2250 mentioned above, then 1.2165. ”
“Resistance is at 1.2310, a temporary low last week, and then at 1.2375, a high earlier this week.”