GBP/USD closed lower due to profit taking on Monday as it extended last Friday's breakout below the 10-day moving average crossing. The mid-range close sets the stage for a steady opening on Tuesday. Stochastics and the RSI are overbought, diverging and are turning bearish hinting that a short-term top might be in or is near. Closes below the 20-day moving average crossing are needed to confirm that a short-term top has been posted. If it resumes the rally off May's low, the 38% retracement level of the 2009-2010-decline crossing is the next upside target.
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