GBPUSD– Pound is likely to become strong in coming sessions. We have seen a strong and interesting battle between Pound and Dollar earlier in this chart. According to some indicators, we came to know that Pound/Dollar pair can take a rebound to touch upside levels.
Moving Average Convergence & Divergence (MACD) has already given bullish crossover signal which is very positive sign in favor of Pound. With the other view on MACD, We are able to see Bullish Divergence indicating price levels of dollar to come upward. Fibonacci retracement is applied from the peak (1.4376) to low (1.2372), through which Price might touch retracement level at 1.3137 of 38.2%. As per applied technical studies, This GBPUSD pair is likely to take a little rebound and will probably test targets which are mentioned below.
Relative Strength Index (RSI) of 14 day period is at 53, which measures to be in uptrend territory. It is interesting to know that RSI is having bullish divergence which can be treated as “Winning Stroke”.
Forecast- Buy GBPUSD for the target of 1.3000 & 1.3100. Any close below 1.2650 will negate the view.