GBP/USD: Advance looks like merely a dead cat bounce

GBP/USD is trading around 1.3080 after hitting daily highs at 1.3093. Meanwhile, Thursday's 4-hour chart is showing downtrend resistance is looming over the cable, Yohay Elam, an analyst at FXStreet, reports.

Key quotes

“Cable has bounced off the double-bottom of 1.3005 mentioned earlier and momentum on the 4-hour chart has turned positive – but only just. On the other hand, downside resistance – that began last week – is looming over GBP/USD.” 

“Resistance awaits at 1.31, where the downtrend currently hits the price. It is followed by 1.3135 is the next cap after holding pound/dollar down earlier this week and the August peak of 1.3183 is next.” 

“Below 1.3005, the next level to watch is 1.2950, which was a cushion in late July. It is followed by 1.2905 and 1.2845.”