On the four-hour chart, GBP/USD is currently trading below the 20-period SMA and has lately fallen below the 100-period and 50-period SMAs as well.
The Relative Strength Index (RSI) indicator also dropped below 50, suggesting the short-term technical outlook’s turn to the downside.
On the downside, substantial technical support is aligned at the Fibonacci 23.6% retracement of the most recent upswing, or 1.2100.
Additional losses could be seen toward 1.2000 (the 200-period SMA) if the pair breaks through that level and begins to use it as resistance.
Prior to 1.2250 (50-period SMA) and 1.2300, 1.2200 (100-period SMA) forms significant resistance (psychological level, static level).
