GBP/USD Price Analysis: Unable to test 1.3060, losses momentum

• Cable’s bullish short-term trend remains intact but it reached a strong barrier. 
• Failure to break above 1.3060 should lead to a correction. 

The GBP/USD is up on Friday, consolidating strong weekly gains and a recovery from four month lows. The move higher run into resistance at 1.3050 before the barrier seen around 1.3060. A break above 1.3060 should reinforce the current rally, opening the doors to 1.3100. 

Technical indicators in the four-hours chart show extreme overbought readings and the RSI is turning south favoring some consolidation or correction ahead. Also Momentum is turning but price remains far from the 20-SMA that stands around 1.2900.

Market volatility is elevated across financial markets that could lead to erratic moves in currency pairs, including GBP/USD. It the pound retreats further, the 20-hour moving average stands at 1.2975. 

In the weekly chart, the 1.3000 zone also coincides with the 20-week moving average. A close above could be positive for the pound but a stronger sign would be a close above 1.3060.

GBP/USD 4 hour chart