The pound sterling has gained about 3% against the US dollar for almost 7 trading days. This is a big price change for the currency market.
The level of 1.3570 serves as support while 1.1400 is seen as resistance which the buyers have to overcome.
Analyzing a daily chart, we suppose that a lengthy upward cycle looks like an inertial move. It indicates that the British pound is getting more overbought.
Outlook and trading idea
On the way up, the price has to deal with strong psychological resistance of 1.1400. This could convince traders to cut long positions and increase short positions on GBP/USD. The most probable scenario is a drop off 1.1400 towards 1.3900.
The alternative scenario will come into being when the price holds firmly above 1.4050 in a daily chart. In this case, the buyers could grab a chance to push the price upwards to the swing high of the medium-term uptrend.
Complex indicator analysis suggests selling opportunities for the short term whereas shorter timeframes are still indicating an upward move.
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