GBP/USD: Channel loss points lower to 1.3050

GBP/USD is sidelined as trades at 1.3085 while Monday's 4-hour chart is showing a drop below the uptrend channel. Notwithstanding, Yohay Elam, an analyst at FXStreet, notes that other technical indicators remain bullish. 

Key quotes

“GBP/USD has dropped out of the uptrend channel that had accompanied it for over a week. Is it a bearish sign? Other indicators remain bullish – the Relative Strength Index on the 4-hour chart dropped below 70, exiting overbought conditions, while momentum remains positive.” 

“Support awaits at the daily low of 1.3050, followed by 1.2970, a stepping stone on the way up. The next level to watch is 1.2910, which also held cable down last week and it is where the 50 Simple Moving Average hits the price.” 

“Resistance is at the daily high of 1.3110, followed by the recent peak of 1.3170. The next lines to watch are 1.32 and 1.3270.”