GBP/USD: Failing to break critical resistance

GBP/USD was rejected at 1.32 as Monday's four-hour chart is showing rejection at the critical resistance, Yohay Elam, an analyst at FXStreet informs.

Key quotes

“The Relative Strength Index on the four-hour chart is above 70 – pointing to overbought conditions that imply a downside correction. GBP/USD was rejected at 1.32, which now turns into a triple top after holding the currency pair down in January and in February. It remains critical resistance.”

“Other indicators are positive, with the cable trading above the 50, 100, and 200 Simple Moving Averages and momentum pointing to the upside.” 

“Above 132, the next line to watch is 1.3285, a peak from December, followed by 1.3310.”

“Support awaits at 1.3070, which was a stubborn cap in February. It is followed by 1.3040, the daily low.”