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At around 1.25, GBP/USD is over 100 pips below the highs and Thursday’s 4-hour chart is showing the cable is at risk of falling back to a lower channel, in the opinion of FXStreet’s analyst Yohay Elam.

Read: GBP/USD flirts with session lows, risks breaking below 1.2500 mark

Key quotes

“The failure to reach the double-top of 1.2645 and a potential retreat back to the uptrend channel are bearish signs. On the other hand, momentum on the 4-hour chart remains to the upside and the Relative Strength Index has dropped below 70, moving out of overbought conditions.”

“Support within the channel awaits at 1.2470, a swing high from early May, followed by 1.24, a round number.” 

“Some resistance is at 1.2575, a stepping stone on the way up. The recent peak of 1.2615 and the double-top of 1.2645 are next.”