GBP/USD retakes 1.26 level and is set to face tough barrier at 1.2670

The GBP/USD pair has recovered the 1.26 level though Wednesday's 4-hour chart is showing that momentum remains weak. Yohay Elam, an analyst at FXStreet, signals tough resistance for the cable at 1.2670 whereas initial support is seen at 1.2570.

Key quotes

“While GBP/USD has been moving up from the lows and above the 50, 100, and 200 Simple Moving Averages on the 4-hour chart, momentum remains to the downside. Moreover, the cable faces fierce resistance at 1.2670, which held it down three times in recent days.” 

“The daily high of 1.2627 is the first cap, ahead of 1.2670 mentioned earlier. It is closely followed by 1.2690, a peak that was seen in early June.”

“Support is awaited at 1.2570, a low point last week, and then by 1.2510, a swing low from last week. The next line to watch is 1.2480, the weekly low.”