GBP/USD: Capped at critical confluence

GBP/USD has been rejected around 1.23, which is where the daily high converges with the 100 Simple Moving Average. Friday's four-hour chart is showing that critical confluence is capping the cable, according to FXStreet’s analyst Yohay Elam.

Key quotes

“The Relative Strength Index is almost at 70, flirting with overbought conditions. Momentum remains to the upside. The currency pair is trading above the 50 SMA and the 200 SMA.”

“Support awaits at 1.2130, the daily low, and also a resistance line earlier this month. It is followed by two lines, the round 1.20 level and 1.1970, a swing high from this week.”

“Resistance above 1.23 awaits at 1.2440, that capped a recovery in mid-March, followed by 1.25, which provided support beforehand.”