GBP/USD is trading at around ?1.2312. Currently testing the 100-day MA support, a break below may see a decline as far as ?1.22.

Technicals

As we can see on the chart, the GBP/USD is currently trading at around £1.2312. From a technical overview, key support sits at £1.2297, as per the 100-day moving average on the 4-hour interval. A break and close below this price could indicate further downside, therefore, the next key support levels sit at £1.2263 then at £1.2168. However, as the pound has been falling since last Friday and the longer-term bias is bullish, we could see some consolidation over the next 24 hours. Hence, resistance above currently sits at £1.2330 then at £1.2342 then a key point at £1.2370 (corresponds to the 50-day moving average). A break above the 50-day MA may see the pound climb back up towards the £1.2400-£1.2450 price range. Taking a look at the technical indicators, MACD is strongly negative and so is RSI as it reads 36. Although, RSI is floating above ‘oversold’ territory.