GBP/USD: Getting in overbought conditions, a correction is likely

GBP/USD Tuesday's four-hour chart is pointing to mild overbought conditions, as FXStreet’s analyst Yohay Elam notes. The cable is gaining 0.31% today, trading at 1.2532.

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Key quotes

“The Relative Strength Index on the four-hour chart is just around 70 – entering overbought conditions. That suggests a correction may be on the cards. Momentum remains to the upside GBP/USD is trading above the 50, 100, and 200 Simple Moving Averages.”

“Some resistance awaits at the daily high of 1.2555, followed only by 1.2645, the all-important double-top.”

“Support awaits at 1.2520, a swing high from April, followed by 1.2475, which is the daily low.”