GBP/USD: Pointing to further falls

Technical conditions on the cable are signaling more falls for the pair in the opinion of FXStreet’s analyst Yohay Elam. GBP/USD  is trading close to the lowest levels since late November at 1.2910.

Key quotes

“Sterling is struggling below a steep downtrend resistance line that accompanies it since the pair peak at 1.3210 in late January. The Relative Strength Index on the four-hour chart has risen above 30 – thus exiting oversold conditions and allowing for more falls. Momentum remains to the downside and the currency pair is trading well below the 50, 100, and 200 Simple Moving Averages.” 

“Support awaits at the fresh low of 1.2870, followed by 1.2820 and 1.2775, both lines last seen in the autumn.”