GBP/USD Technical Analysis: Highly overbought conditions might prompt some profit-taking/cap further gains
• The pair extended its strong bullish momentum and surged to an intraday high level of 1.3338 - the highest since July 2018 during the mid-European session on Wednesday.
• The overnight break through a confluence region - comprising of 38.2% Fibo. level of the 1.4377-1.2396 downfall and a descending trend-line was seen as a key trigger for bulls.
• Meanwhile, technical indicators on hourly/daily charts are now pointing to highly overbought conditions and might act as the only factor capping any follow-through up-move.
• Hence, any subsequent move seems more likely to witness some profit-taking near 50% Fibo. level, around the 1.3385 region, given an upsurge of over 350-pips since Friday.
GBP/USD daily chart
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GBP/USD
Overview:
Today Last Price: 1.332
Today Daily change: 64 pips
Today Daily change %: 0.48%
Today Daily Open: 1.3256
Trends:
Daily SMA20: 1.2995
Daily SMA50: 1.289
Daily SMA100: 1.288
Daily SMA200: 1.2992
Levels:
Previous Daily High: 1.3288
Previous Daily Low: 1.3094
Previous Weekly High: 1.3109
Previous Weekly Low: 1.2891
Previous Monthly High: 1.3214
Previous Monthly Low: 1.2438
Daily Fibonacci 38.2%: 1.3214
Daily Fibonacci 61.8%: 1.3168
Daily Pivot Point S1: 1.3137
Daily Pivot Point S2: 1.3018
Daily Pivot Point S3: 1.2942
Daily Pivot Point R1: 1.3331
Daily Pivot Point R2: 1.3407
Daily Pivot Point R3: 1.3526