GBP/USD Bullish Trend Faces Overbought Signals
Solid ECN – The GBP/USD pair is trading at about 1.27, above the 61.8% Fibonacci retracement level in today's session. The RSI indicator is at 67.2, suggesting strong bullish momentum and approaching overbought territory. On the other hand, the recent bars of the Awesome Oscillator are smaller, indicating the uptrend is weakening.
From a technical standpoint, the primary trend is bullish, but the RSI signals that the pair might be overbought. Therefore, waiting for the GBP/USD to consolidate near the 50-day EMA would provide a better entry point than going long on the pair at the current price.
Conversely, the bullish trend would be invalidated if the price dips below the 50-day EMA at 1.263.