The technical correction off a 33-week high is supported by the swing of the technical oscillators as a 280-pips strong move higher on GBP/USD is temporarily exhausted even with the prospects of delayed Brexit.
The technical oscillators including Momentum and the Relative strength index are turning lower from their elevated positions pointing downwards and Slow Stochastics made a bearish crossover within the Overbought territory. The most important technical feature though is the golden cross of the 50-day moving average crossing over the 100-day moving average (DMA). The golden cross is a strongly bullish technical signal that is expected to push Sterling higher long-term. In the short-term, the GBP/USD though is in corrective mode around mid 1.3200s before testing 1.3215, previous cyclical high. On the upside, the immediate target is at 1.3390 representing 61.8% Fibonacci retracement of post-Brexit recovery from 1.1800 to 1.4374.
Been a FOREX analyst for the past decade, Founder of FOREX UNIT, a reference website for FX traders, he has a long experience as a currency analyst with a deep knowledge in FOREX, Stocks Indicies and Commoditires.