GBP/USD: On the verge of oversold conditions

GBP/USD Monday's four-hour chart is pointing to near-oversold conditions, Yohay Elam, an analyst at FXStreet, informs.

Key quotes

“The Relative Strength Index on the four-hour chart is flirting with the 30 level – on the verge of oversold conditions, which would imply a bounce. On the other hand, the cable is trading below the 50, 100, and 200 Simple Moving Averages and momentum remains to the downside.” 

“The fresh seven-month low of 1.2075 is the immediate line of support. It is followed by 1.1980, which was a temporary high in March.”

“Resistance is at 1.2160, a former double bottom, followed by 1.2250, which also had the same role before succumbing to pressure.”