Monday, 15 January 2018

GBP/USD is gaining momentum

GBP/USD is moving steeply upwards and today marked fresh new high, that has not been seen since June 2016 and even reached the Brexit referendum levels. However the pair retreated from the 1.3822 to currently trade at 1.3795. 
Technically speaking the short term outlook for GBP/USD remains neutral to bullish. On the four hour time frame the price is developing well above its moving averages, all keeping bullish slopes. RSI is located within extreme overbought territory, but has eased around 82 level. The Momentum retreated modestly from its north areas, but when the pair is challenged to test again the daily high, a correction is out of the question at this stage. 
First resistance is provided by 1.3835 (February 2016 low) and in case bulls conquer it, doors are opened for testing the psychological 1.4000 handle.


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