GBP/USD closed lower on Tuesday as it extended this winter's decline. A short covering rally tempered early losses and the high-range close sets the stage for a steady to higher opening on Wednesday. Stochastics and the RSI are oversold, diverging and are turning neutral to bullish hinting that a short-term low might be in or is near. Closes above the 20-day moving average crossing are needed to confirm that a short-term low has been posted. If it extends the decline off January's high, the 75% retracement level of 2009's rally crossing is the next downside target.
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