GBP/USD: All signs are bearish for the pound

GBP/USD Monday's four-hour chart is pointing to losses for the cable, Yohay Elam, an analyst at FXStreet, reports. Commerzbank agrees with this view, as the currency pair remains directly offered below the 200-day ma at 1.2297. 

Key quotes

“GBP/USD is suffering from downside momentum on the four-hour chart and trades below the 50, 100, and 200 Simple Moving Averages – all bearish signs. Moreover, it is capped by a downtrend channel that hits the price at around 1.2220.”

“Support awaits at 1.2165, a former double bottom, and the daily low. It is followed by 1.2080, May's trough, and by the psychologically significant 1.20 level.”

“Some resistance is at 1.2190, the daily high, with the downtrend providing another cap. Next, 1.2250 was another double-bottom and 1.23 was the peak last week.”