GBP/USD technical analysis: 4H 100MA challenges immediate upside amid overbought RSI
|- 4H 100MA, 11-week descending trend-line limit the GBP/USD pair’s near-term upside amid overbought RSI levels.
- Sellers await a break of 1.2510/05 for fresh positions.
The GBP/USD pair’s recent recovery is currently struggling with the 100-bar moving average (4H 100MA) while taking the rounds to 1.2545 on early Friday.
Not only repeated failure to cross the key short-term moving average (MA) but overbought conditions of the 14-bar relative strength index (RSI) also signals brighter chances of the quote’s pullback to 1.2510/05 area comprising multiple supports and June month low.
In a case where sellers dominate past-1.2505, July 09 low close to 1.2440 and current month bottom surrounding 1.2382 could be on their radars.
Alternatively, pair’s ability to rise beyond 4H 100MA level of 1.2551 will be tested by the 11-week old descending trend-line ranged since early-May, at 1.2594.
However, a successful break of 1.2594 opens the gate for the rally towards late-June lows close to 1.2660.
GBP/USD 4-hour chart
Trend: Pullback expected
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.