GBP/USD: More gains allowed

GBP/USD has been falling as markets attempt to recover from the coronavirus-linked crash on Monday. The cable Tuesday's technical chart is pointing to a resumption of gains.

Key quotes

“The cable is trading above the 50, 100, and 200 Simple Moving Average on the four-hour chart and the Relative Strength Index has dropped below 70 – exiting overbought conditions and allowing for more gains.” 

“Initial support awaits at 1.3020, a swing high in February, and then by 1.2950, a resistance line dating back to February.

“Some resistance is at 1.3070, which capped cable twice in February. It is followed by 1.32, Monday's peak, which also held it back beforehand.”