- GBP/USD trades just under flat on Thursday.
- The price met an important resistance zone and dips back below 1.25.
GBP/USD 4-hour chart
GBP/USD lost some of its upside momentum after the impressive NFP data on Thursday. Despite the data maybe GBP moved too far too fast as it did impress against the likes of the EUR recently too.
Looking at the technicals, the price recently has broken out of the blue channel zone to move higher. Just today the move has been cut short at the resistance zone at 1.2530. The resistance level is the wave low from the first move lower back on 12th June. This could be considered the wave 1-2 low by Elliott Wave analysts. Now there has been a rejection the top of the purple channel could be tested again. The main target for the bears will be the red support zone at 1.2257.
The technical indicators are still painting a bullish picture. The MACD histogram is still green but more importantly, the signal lines are above the mid-zone. The Relative Strength Index has pulled away from the overbought level but is still holding above 50.
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