GBP/USD: Can the bulls prevent the urge to take profits now on an impressive run higher? [Video]
|GBP/USD
With momentum stretched after an accelerating bull run, the bulls will need to react to Friday’s stalling candlestick to prevent what could be a corrective move developing on Cable. A candlestick that hinted at exhaustion on Friday, was arguably a shooting star, came after a succession of strong bull sessions. The RSI is historically stretched around 80 and with traders coming back in on Monday morning to see a consolidation, there is a battle for control. Can the bulls prevent the urge to take profits now on an impressive run higher? The hourly chart is hinting that the set up is less positive than it has been for over a week, but is still relatively positive. The support of a two week uptrend comes in around 1.3000 this morning, and hourly chart moves show that there is a basis of support 1.2950/1.3000 which would be the first real band of support to be tested. Coming into the European session, there is a lack of conviction in moves and a lack of direction. The resistance at 1.3200 was considerable earlier in the year, and could again be the excuse for Cable bulls to take a step back once more. As yet though, no conviction.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.