The GBP/USD pair has stalled after a significant 400-pip rally, showing signs of exhaustion as it hovers around the 1.3200 level. The Relative Strength Index (RSI) is indicating overbought conditions, suggesting that buyers may be losing steam.
If the pair fails to break above the 1.3230 level and closes below 1.3200, it could trigger a pullback. Support levels to watch for in this scenario include 1.3130, 1.3100, and further down at 1.3043. On the other hand, if GBP/USD breaks above 1.3230, resistance levels to keep an eye on are 1.3250 and the psychological 1.3300 mark.
The British Pound began the week on a positive note but has struggled to break last Friday’s new year-to-date high of 1.3230, trading almost flat at 1.3204. The price action today is forming a ‘doji,’ indicating indecision among market participants.
In terms of technical outlook, the GBP/USD pair is showing signs of exhaustion following a significant rally. Momentum suggests that buyers are losing steam, as indicated by the overbought RSI. A daily close below 1.3200 could lead to a deeper pullback, with potential support levels at 1.3130, 1.3100, and 1.3043.
Overall, the GBP/USD pair is currently in a consolidation phase, with key support and resistance levels to watch for in the near term. Traders will be closely monitoring the price action to determine the next potential direction for the pair. Stay tuned for further developments in the GBP/USD pair as it navigates through these critical levels in the coming days.
