GBP/USD: Technicals suggest a downside correction before the next move up

Yohay Elam, an analyst at FXStreet, expects the cable to experience a downward correction before the next move up as Thursday's 4-hour chart is pointing to overbought conditions. 

Key quotes

“GBP/USD has entered overbought territory according to the Relative Strength Index on the 4-hour chart – which is above 70. Cable continues trading above the 50, 100, and 200 Simple Moving Averages, and momentum remains positive.” 

“Resistance awaits at 1.2680, a peak in mid-June. It is followed by 1.2730, a stepping stone on the way up earlier last month.”

“Support is at 1.2590, a swing high from earlier this week, followed by 1.2550, a peak in late June.”