GBP/USD tests daily lows despite bullish technical outlook

The GBP/USD pair is trading near daily lows around 1.2725. Nonetheless, Friday's 4-hour chart is painting a favorable picture for bulls as the cable trades above all its SMA and momentum stays positive, Yohay Elam, an analyst at FXStreet, reports.

Key quotes

“GBP/USD is trading above the 50, 100, and 200 Simple Moving Averages on the 4-hour chart, and is setting higher highs and higher lows. Momentum has somewhat weakened but remains to the upside.” 

“Resistance awaits at the daily high of 1.2773, followed by June's peak of 1.2815. Further above,1.2895 and 1.2980 are eyed.”

“Support is initially seen at 1.2715. It is followed by 1.2670, a swing low earlier this week, and the former triple top. The next levels are 1.2645 and 1.2610.”