The
GBP/USD pair had corrected from the extreme overbought conditions from last
Friday and today is seen gravitating around 1.30 area.
On the four-hour time frame the price keeps advancing above the uptrending
20-day SMA, while RSI and stochastic retreated from the their extreme values.
Both indicators developed bearish slopes, but yet have not enough directional
strength to confirm bears’ return.
As clearly seen on the chart the correction has stopped at the 23.6% Fibonacci
retracement of latest up leg – July 12th to July 14th, which is also acting as
strong support level at 1.3040. In case of breaking this level, the pair will
be poised to extend its decline towards 1.30 mark.
Looking to the upside first resistance is seen at 1.3115 (Friday’s top) and
next at 1.3160 9 (September 2016’s high).
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