GBPUSD could move sideway as BULLS come under technical pressure
Mixed picture for GBP/USD after a strong move north last week. News that Kristen Forbes, Monetary Policy Committee member, dissented at Thursday's MPC Statement and voted for a rate hike saw the GBP surge and the GBP finished up 240 pips up on the week.
GBP BULLS will be encouraged that Friday closed higher than Thursday, suggesting that the impact of talk of a sterling future rate rise was still influencing traders.
Price is now right up against the 100 sma on the DTF and the 200 sma on H4.
If the BULLS can keep the price at the current level then we should see the GBP advance further but its likely we'll move sideways whilst overbought conditions unwind.
Trade idea
BUY if price rises above 1.24
SELL below 1.2323 for a move south but be ready to get LONG on a retrace.
GBP BULLS will be encouraged that Friday closed higher than Thursday, suggesting that the impact of talk of a sterling future rate rise was still influencing traders.
Price is now right up against the 100 sma on the DTF and the 200 sma on H4.
If the BULLS can keep the price at the current level then we should see the GBP advance further but its likely we'll move sideways whilst overbought conditions unwind.
Trade idea
BUY if price rises above 1.24
SELL below 1.2323 for a move south but be ready to get LONG on a retrace.
