GBP/USD approaches initial resistance at the 1.3130 daily high

Wednesday's four-hour chart is painting a mixed picture as the GBP/USD pair retains a negative momentum but trades above all SMA. The cable, which trades around 1.3120, near the 1.3130 daily high, finds initial support at the 1.3050 daily low, FXStreet’s analyst Yohay Elam briefs.

Key quotes

“Cable's latest upswing is not driven by momentum – which remains negative on the 4-hour chart. On the other hand, GBP/USD is trading above the 50, 100, and 200 Simple Moving Averages, a tailwind for the currency pair.”

“Resistance is at the daily high of 1.3130, followed by July's peak of 1.3170. Further resistance awaits at 1.32 and 1.3270.” 

“Support awaits at 1.3050, the daily low, followed by 1.2985, Tuesday's trough. Further down, 1.29 and 1.2845 await pound/dollar.”