GBP/USD: Creating a double bottom at 1.2250

GBP/USD Wednesday's four-hour chart is showing a bounce off the double bottom, as FXStreet’s analyst Yohay Elam notes.

Key quotes

“GBP/USD has hit 1.2250, creating a double bottom after touching that level in late April. That bullish development is countered by downside momentum on the four-hour chart and by the currency pair setting lower highs and lower lows.” 

“The cable is trading below the 50, 100, and 200 Simple Moving Averages and the Relative Strength Index is holding above 30 – outside oversold conditions.”

“Some support awaits at 1.2270, which was a swing low last week. It is followed by 1.2250 mentioned earlier, and then by 1.2165.” 

“Resistance is at 1.2310, a temporary trough last week, and then by 1.2375, a high point earlier this week.”