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GBP/USD Wednesday’s four-hour chart is pointing to further falls, Yohay Elam, an analyst at FXStreet, informs.

Key quotes

“The Relative Strength Index on the four-hour chart is on the verge of falling below 30 – entering oversold conditions. That could trigger a bounce, yet other indicators such as momentum and the 50, 100, and 200 Simple Moving Averages are pointing to the downside.” 

“Some support awaits at the daily low of 1.2360, followed by 1.23, which provided support in late April.”

“The first cap is 1.2405, which was a swing low earlier this week. It is followed by 1.2450, where the 50 SMA hits the price, and more importantly by 1.2480, the weekly high.”