The GBP/USD pair has pulled back since making new highs on Friday; momentum is very overbought and the breakout from the triangle has fulfilled its price objective signalling that porbably a temporary top is now in place. At the moment the pull-back is very shallow and there are no signs of it extending lower, however given how overbought things are, if it does then it will reach the monthly pivot at 1.6175 first and next the trend-line at 1.6140 not far below. A resumption of the up-trend, meanwhile, could lead to a move up to resistance highs at 1.6300.
Written by Forex4you