The GBP/USD pair has broken out of its wedge pattern towards the upside. The projection of this pattern could push the price near the 1.4875 level. The price has retraced after touching the minor resistance zone which is mentioned below.This confirms that there are some sellers who are willing to push the price lower.
The price has also pierced the Bollinger band at a minor resistance zone (as shown in the chart below) and this confirms that the volatility was high. The piercing of the Bollinger band does have a significant importance amid some traders, as they do deem this is as an opportunity to buy or sell. The significance of the piercing of the Bollinger band is even higher when this takes place at an important level of support or resistance. Under the current circumstances, it did take place at a minor resistance zone.
The reading for the Bollinger the upper and lower bands are 1.4441 and 1.4291 respectively.
The RSI is trading at 67.10 which is near the overbought territory and this may push the price lower or trigger a pause for the price action. However, the direction of the RSI remains in the same direction as the price action confirming that the price has momentum behind it.
|Minor Support||Major Support||Minor Resistance||Major Resistance|