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The GBP/USD pair is trading near daily highs just below the 1.29 level, up 0.36% on the day, but Tuesday’s 4-hour chart is pointing to further falls as the upswing looks like a corrective move, according to FXStreet’s analyst Yohay Elam.

Key quotes

“The downtrend continues – with the latest upswing looking like a necessary correction before the next dive. The Relative Strength Index on the 4-hour chart has risen above 30, exiting oversold conditions and allowing for more falls. The 50 Simple Moving Average is extending its downfall after crossing below the 100 and 200 SMAs, and momentum remains negative.” 

“Some support awaits at the daily low of 1.2847, followed by September’s trough of 1.2765. The next lines to watch are 1.2715 and 1.2665, dating back to early in the summer.” 

“Resistance is at 1.2920, Monday’s high, followed by 1.3045, a stubborn cap from last week. Further above, 1.3150 and 1.3180 await cable.”