GBP/USD falls out the uptrend channel, support awaits at 1.2910

GBP/USD fades upside momentum from 1.3013, the highest since March 10, and is down 0.35% on a day to 1.2950 as Thursday's 4-hour chart is showing the cable has dropped off the uptrend channel, FXStreet’s analyst Yohay Elam reports.

Key quotes

“GBP/USD has slipped off the uptrend channel that had accompanied in the past week – a bearish sign. While momentum on the 4-hour chart remains positive, the Relative Strength Index is still close to 70 – potentially entering overbought conditions upon any small rise.”

“Support awaits at 1.2910 and 1.2845, both serving as stepping stones on the way up. The next line to watch is 1.2775, which separated ranges late last week.” 

“Initial resistance is at 1.2975, which temporarily held sterling down on Thursday, and then the recent peak of 1.3010.”