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GBP/USD reversed an early dip to the 1.2360-55 region and now trades at 1.24. Yohay Elam, an analyst at FXStreet, notes that bears remain in control of the cable and points to the 1.2340 support.

Key quotes

“Momentum on the 4-hour chart remains to the downside and the 50 Simple Moving Average recently broke below the 200 SMA, a bearish sign. The Relative Strength Index is back to balanced levels after flirting with oversold conditions.”

“Support awaits at 1.2340, a support line from mid-June, followed by 1.23, a round number that provided support in late May. It is followed by 1.2250 – now a double-bottom after preventing further falls on Tuesday.” 

“Resistance is at 1.24, a stubborn cap, and where the downtrend resistance line hits the price. The next levels to watch are 1.2450 and 1.25.”