GBP/USD: Resumption of the downturn

GBP/USD late March's daily chart is pointing to a resumption of the downturn, according to FXStreet’s analysts Yohay Elam.

Key quotes

“The Relative Strength Index on the daily chart has emerged from below 30, thus exiting oversold conditions – and allowing for more falls. Momentum remains to the downside, and the currency pair trades well below the 50, 100, and 200-day Simple Moving Averages.”

“Some support awaits at 1.22, which provided some relief in mid-March. It is followed by 1.1970, which temporarily paused the recovery.”

“Looking up, 1.2405, a stepping stone on the way down, played a role in late 2019. The round level of 1.25 held cable up in mid-March. It is followed by 1.2610.”