GBP/USD closed lower on Friday and tested the 50% retracement level of 2009's rally crossing. A short covering rally tempered early losses and the high-range close sets the stage for a steady to higher opening on Monday. Stochastics and the RSI are diverging but are turning neutral to bearish hinting that additional weakness is possible. If it extends the decline off January's high, the 62% retracement level of 2009's rally crossing is the next downside target. Closes above the 20-day moving average crossing are needed to confirm that a short-term low has been posted.
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