GBP/USD has just done something that hasn't happened in three years, trading above the 1.3500 level. The last time this happened in the pair was before the Federal Reserve began the rate hike campaign in 2022, and over the past four months its been a strong reversal of more than 1,400 pips as USD bears have taken back over.
At this point weekly RSI is showing in overbought territory which makes the prospect of chasing the pair higher, particularly after the first test of a major psychological level, as a more complicated endeavor.
This doesn't rule out shorter-term momentum or trend strategies, however, and given the amount of resistance that had showed at the Fibonacci level of 1.3414, there's a very attractive spot for higher-low support to show. That level held the highs last year, and then again in April. - js
At this point weekly RSI is showing in overbought territory which makes the prospect of chasing the pair higher, particularly after the first test of a major psychological level, as a more complicated endeavor.
This doesn't rule out shorter-term momentum or trend strategies, however, and given the amount of resistance that had showed at the Fibonacci level of 1.3414, there's a very attractive spot for higher-low support to show. That level held the highs last year, and then again in April. - js
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.