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GBP/USD trades just above 1.2550, up 0.08% on a day, as Wednesday’s 4-hour chart is painting a bullish picture as the cable is above all its moving average and enjoying upside momentum, FXStreet’s analyst Yohay Elam informs.

Key quotes

“GBP/USD has broken above a downtrend support line that capped it since late June and is trading above the 50, 100, and 200 Simple Moving Averages on the 4-hour chart. It is also benefiting from upside momentum. The Relative Strength Index is nearing 70 – indicating overbought conditions. Another move higher and the RSI may play against the cable.”

“Resistance awaits at the recent peak of 1.2590. It is followed by 1.2680, which was a high point in mid-June.”

“Looking down, support is at 1.2525, a temporary peak from early in the month. It is followed by 1.2460, the weekly low, and then by 1.24, a round level that also held GBP/USD down last week.”