GBP/USD's strong rally shows signs of subsiding
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The strong rally of GBP/USD has stalled recently, and the current volatility may be maintained for a longer period of time before prices start to rise further.
Although the British inflation data released last week showed that inflation is still high, the recent monetary policy tendencies of the British pound and the US dollar are roughly the same. Judging from the multi-month time frame, the British pound is in an overbought state, and there are signs that the pound's rally is technically weak.
Technical trend analysis
The pace of GBP/USD's rise in recent months has been very strong, and the price volatility in the past six months is the highest level since 2014.Although the upside momentum is still intact in the medium-term outlook, the rally may slow down or even reverse in the near future. This sign can be seen from the reversal of the candlestick chart in the figure above.
From a technical point of view, the trend of longer cycles is biased to the upside.The candlestick chart that distinguishes colors according to the momentum indicator shows that the GBP/USD daily line is in a bullish stage.However, GBP/USD encountered difficulties in trying to break through the top of the volatility range of 1.2450 since the end of 2022.
In addition, the recent top divergence of the RSI indicator on the daily chart shows that the upward momentum of GBP/USD is fading.
If you have any questions in the process of trading, you can directly click on the link below and I will help you.I hope everyone will go smoothly on the road to investment
The strong rally of GBP/USD has stalled recently, and the current volatility may be maintained for a longer period of time before prices start to rise further.
Although the British inflation data released last week showed that inflation is still high, the recent monetary policy tendencies of the British pound and the US dollar are roughly the same. Judging from the multi-month time frame, the British pound is in an overbought state, and there are signs that the pound's rally is technically weak.
Technical trend analysis
The pace of GBP/USD's rise in recent months has been very strong, and the price volatility in the past six months is the highest level since 2014.Although the upside momentum is still intact in the medium-term outlook, the rally may slow down or even reverse in the near future. This sign can be seen from the reversal of the candlestick chart in the figure above.
From a technical point of view, the trend of longer cycles is biased to the upside.The candlestick chart that distinguishes colors according to the momentum indicator shows that the GBP/USD daily line is in a bullish stage.However, GBP/USD encountered difficulties in trying to break through the top of the volatility range of 1.2450 since the end of 2022.
In addition, the recent top divergence of the RSI indicator on the daily chart shows that the upward momentum of GBP/USD is fading.
If you have any questions in the process of trading, you can directly click on the link below and I will help you.I hope everyone will go smoothly on the road to investment
Comment:
Normal fluctuation