GBP/USD: More upside after a small correction

GBP/USD gains traction for the ninth straight session as the cable climbed to fresh multi-month tops, around the 1.2975 region, and trades at 1.2964 as of writing in spite of the fact that Wednesday's 4-hour chart is pointing to overbought conditions, FXStreet’s analyst Yohay Elam briefs.

Key quotes

“The Relative Strength Index on the 4-hour chart is around 70 – flirting with overbought conditions and implying a downside correction. Momentum remains upbeat and the currency pair is trading above the 50, 100, and 200 Simple Moving Averages, hinting of more gains if the correction is moderate.”

“The daily high of 1.2975 is the first hurdle, and it is closely followed by the round 1.30 level. Further above, 1.3070 and 1.3150 come into play.”

“Support awaits at 1.29, followed by 1.2845 and 1.2775. All served as stepping stones on the way up.”