Further GBPUSD Gains Likely Limited Near-Term
GBP price analysis and outlook:
- GBPUSD has been rising within an upward-sloping channel on the charts.
- However, a pause now seems likely before its climb resumes.
GBPUSD advance running out of steam
The GBPUSD price has been strengthening for nearly two weeks now as fears that the UK will leave the EU without a Brexit deal have receded. However, a pause is now possible before the rally extends higher. As the hourly chart below shows, the pair is already finding it hard to make a significant break above the 1.33 level.
GBPUSD Price Chart, Hourly Timeframe (February 15-28, 2019)
Chart by IG (You can click on it for a larger image)
Moreover, the trendline joining the recent higher highs is now around 1.3385 and the price will have to break through it before reaching the next important psychological level of 1.34. In addition, the daily chart shows the pair stalled just above the 1.34 level on several successive days back in June 2018, adding to the resistance there.
On the other hand, the downside is now well protected, with a raft of moving averages sitting below the current price. Note too that the RSI on the chart above is no longer at the 70 level signifying the pair has been overbought and that there is still a bullish signal from the retail trader sentiment data.
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--- Written by Martin Essex, Analyst and Editor
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.