GBP/USD Price Analysis: Overbought RSI conditions warrant caution for bulls

GBP/USD consolidates the spike to multi-month tops of 1.4234.
Overbought conditions on daily RSI are a cause for concern.
The cable could correct before resuming the uptrend towards 1.43.

Dhwani Mehta FXStreet

GBP/USD is consolidating the vertical rise to 35-month highs of 1.4234, as the bulls are lacking follow though impetus after failing to recapture the 1.4200 level.

At the press time, the cable trades at 1.4175, adding 0.49% on the day. The spot moves away from the higher levels despite the renewed weakness in the US dollar across the board.

Therefore, the cautious tone seen around the major could be mainly attributed to the overbought conditions on the Relative Strength Index (RSI), given the daily timeframe.

The bulls are now contemplating the next move, with the 1.4300 level still on sight. Although a correction could be in the offing before the cable takes a flight once again northwards.

To the downside, the bears have to beat the daily lows of 1.4106, in order to extend the corrective downside.

GBP/USD: Daily chart

GBP/USD: Additional levels

GBP/USD

Overview
Today last price	1.4175
Today Daily Change	0.0062
Today Daily Change %	0.44
Today daily open	1.4114

Trends
Daily SMA20	1.3819
Daily SMA50	1.3679
Daily SMA100	1.3424
Daily SMA200	1.3102

Levels
Previous Daily High	1.4117
Previous Daily Low	1.4054
Previous Weekly High	1.4036
Previous Weekly Low	1.383
Previous Monthly High	1.3759
Previous Monthly Low	1.3451
Daily Fibonacci 38.2%	1.4093
Daily Fibonacci 61.8%	1.4078
Daily Pivot Point S1	1.4073
Daily Pivot Point S2	1.4032
Daily Pivot Point S3	1.401
Daily Pivot Point R1	1.4136
Daily Pivot Point R2	1.4158
Daily Pivot Point R3	1.4198

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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