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At press time, GBP/USD continues scaling higher, up 0.33% on a day to 1.2515, while Thursday’s 4-hour chart is pointing to overbought conditions and strong resistance at 1.2550, FXStreet’s analyst Yohay Elam reports.

Key quotes

“The Relative Strength Index on the 4-hour chart is around 70 – entering overbought conditions and implying a downside correction. On the other hand, GBP/USD is trading above the 50, 100, and 200 Simple Moving Averages after the recent surge, and benefits from upside momentum. Moreover, cable has decisively broken above the stubborn downtrend resistance line.” 

“Strong resistance awaits at 1.2550, a high point in late June and that could test overbought conditions. Further above, the next line to watch is 1.2620, followed by 1.2680.”

“Some support awaits at the round 1.25 level, followed by 1.2455, which provided support early in the day. The next levels are the former separator of ranges at 1.24 and 1.2340.”