GBP/USD drops to 1.2280

GBP/USD continue to retreat from 1.2345 (Asian session high) on the back of a stronger US dollar on another low volume session. Recently it printed a fresh daily low at 1.2277. From the lows it bounce to the upside approaching 1.2300. 

Currently it trades at 1.2290, 40 pips below Friday’s closing price. The pair appears to have found a short-term support around 1.2280. 

Technical outlook 

“Short term, the 1 hour chart shows that the price has broken below a now bullish 20 SMA, whilst the Momentum indicator heads sharply lower within oversold territory as the RSI indicator extends lower, currently at 43, all of which supports a bearish extension”, said Valeria Bednarik, Chief Analyst at FXStreet. 

According to her the 4-hour chart, showed price above a now flat 20-SMA, “whilst technical indicators have turned south and hold around their mid-lines, also favoring a downward move ahead.”