Jan 29 2019

Sterling (GBP) recent rally – likely to take a break

On 11 January (Premium Research Report), it was already forecasted that GBPUSD prices will touch 1.3000 & 1.3100 levels. As we noticed that overall trend is up of this currency pair, here Pound is standing on the previous mentioned target and likely to take correction from initial levels then might take some rebound to upside.

At this point of time, GBPUSD is trading at around 1.3150 where the pair might take resistance of Simple moving average with a reading of 200 days. It is noticed that pair is currently trading close to its strong Trend line (Blue line) resistance. Earlier the Trend line acted well as a strong resistance. 1.3000 levels can be seen downside as a small correction, after that price might look forward to touch 1.3500 Mark.

Stochastic indicator is in overbought territory which is indicating that the recent rally is likely to take a break. The indicator is signaling a good opportunity to take position at dip. On the other hand, Relative Strength Index of 14 day is at 66 which is near to its overbought zone.