GBP/USD: Clear downtrend faces support at 1.2340

GBP/USD trades at 1.2359, up 0.19% on a day, but Monday's 4-hour chart is pointing to the downside with the next support seen at 1.2340, Yohay Elam, an analyst at FXStreet, informs.

Key quotes

“GBP/USD is trading under the 50, 100, and 200 Simple Moving Averages on the 4-hour chart and momentum remains to the downside. The Relative Strength Index is above 30, thus outside oversold conditions. Moreover, any recovery attempt may be capped by the downtrend resistance line that has been looming over cable since mid-June.” 

“Support awaits at 1.2340, a support line from two weeks ago, followed by 1.2315, Friday's low.” 

“Resistance is at 1.24, a round number that also provided support in mid-June. It is followed by 1.2465, a swing high from last week, and then by 1.25, another round number.”