GBP/USD: Selling opportunity

GBP/USD has fallen toward the 2020 lows. Thursday's four-hour chart is pointing to further falls for the cable, according to Yohay Elam from FXStreet. 

Key quotes

“The recent fall has sent GBP/USD below the 50, 100, and 200 Simple Moving Averages that were converging around 1.30. Momentum remains to the downside and the Relative Strength Index is just above the 30 level – outside oversold conditions and implying further falls. 

“Overall, bears are in control.”

“Initial support is at 1.2890, which was a swing low earlier this month. Critical support awaits at the 2020 trough of 1.2875.”