British Pound Struggling At New Resistance
|For many weeks running, GBP/USD has been trading sideways in the pink consolidation. After moving higher recently, just what are the chances of the breakout sticking?
GBP/USD recently broke above the pink multi-week consolidation, and the bulls didn’t really look back. The pair extended gains and reached the orange resistance area created by the May peaks, and the 50% Fibonacci retracement.
This move took the exchange rate also slightly above the upper border of the rising green trend channel. Before jumping to conclusions, let’s take a look also at the position of the daily indicators. Both the CCI and the Stochastic Oscillator are very close to generating their sell signals.
Coupled with the above-mentioned resistance zone and the current position of the daily indicators, it seems that a reversal and lower values of GBP/USD may be just around the corner.
Should we see an invalidation of the breakout, we’ll consider opening short positions.
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