19 Aug 2024
Pound Sterling trades mixed at start of week
Technical Analysis: GBP/USD continues short-term rally
GBP/USD extends its sequence of higher highs and higher lows on the 4-hour time frame. This indicates the short-term trend is bullish and given “the trend is your friend” it is biased to continue rising.
GBP/USD will probably extend higher to the next target at 1.3042 (July 17 high).
The Relative Strength Index (RSI) has risen into the overbought zone, indicating an increasing risk the pair could pull back. Former highs at 1.2940 could provide a support level for any pull back that materializes. The round number of 1.2900 is another level the pair might fall to in the event of a correction.
The medium and longer-term trends remain opaque and more “sideways” than directional, with price action trapped in the range between 1.2300 and 1.3042 since November 2023.
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