GBP/USD: Downside momentum to challenge the 1.25 level

Monday's 4-hour chart is pointing to further losses as the GBP/USD pair has been unable to hold above the 100 and 50 SMA. Yohay Elam, an analyst at FXSteet, set the first support at 1.25.  

Key quotes

“GBP/USD is suffering from downside momentum on the 4-hour chart, falling and it is fighting to hold onto the 100 Simple Moving Average after losing the 50 SMA beforehand. The Relative Strength Index is above 30, outside oversold conditions, and allowing for fresh falls.” 

“Support is 1.25, a round number that also served as support in early June. Next, the daily low of 1.2455 and 1.24, which is where the 200 SMA hits the price, are the next lines to watch.” 

“Resistance is at 1.2550, the daily high, followed by 1.2615, a swing high from last week, and next by 1.2650, a peak on Friday.”