GBP/USD Wednesday's four-hour chart is painting a bullish picture with clear resistance at 1.2360, as FXStreet’s analyst, Yohay Elam notes.

UBS expects the cable trading at 1.38 by year-end

Key quotes

“GBP/USD continues enjoying upside momentum on the four-hour chart and the Relative Strength Index dropped below 70 – exiting overbought conditions. The recent rise sent sterling above the 100 Simple Moving Average and the most significant resistance is at 1.2360 – Tuesday's peak and where the 200 SMA hits the price.”

“Below 1.2360, the cable is capped at 1.2340, a stepping stone on the way down from mid-May. Higher above, the next noteworthy line to watch is 1.2470, a swing high from early in the month.” 

“Some support is at the daily low of 1.2285, followed by 1.2250, which held it down last week.”