GBP/USD: Losing the uptrend support line could trigger a sharp sell-off

The cable is trading alongside a moderate uptrend support line that has been accompanying it since early April as the mid-May's daily chart is painting a mixed picture, FXStreet’s analyst Yohay Elam informs.

Key quotes

“Momentum on the daily chart has slipped back down and GBP/USD is capped by the 50, 100, and 200-day Simple Moving Averages.” 

“Some support awaits at 1.2405, which held cable down in late April and later served as support. The line is closing in around 1.2320, and the next line to watch is 1.2250, which was a low point in late April.”

“Resistance is at 1.2520, which was a temporary high in late April. Further up, the double-top of 1.2645 awaits sterling.”