GBP/USD: Friday may see fresh falls

GBP/USD has hit a high of 1.1878 earlier in the day after bottoming out at 1.1409 beforehand – more than 450 pips. Friday's four-hour chart is pointing to overbought conditions, according to FXStreet’s analyst Yohay Elam.

Key quotes

“GBP/USD has risen above the 30 mark on the four-hour chart, moving out of oversold conditions and allowing for new falls.”

“The cable is still oversold on the daily chart. Momentum remains to the downside and the currency pair is well below the critical Simple Moving Averages.”

“Some resistance is at the swing high of 1.18 seen on Thursday, followed by Friday's daily high of 1.1878.”

“Support is at 1.17, a round level that temporarily capped cable in recent days. The next round numbers of 1.16 and 1.15 are also of importance.”