An upward sloping trend line since late-June, overbought conditions of RSI highlight October top as nearby support.

Bulls can target May high, yearly top during the further rise.

GBP/USD pushed higher to 1.31554 this Friday’s Asian session. The pair clings to a multi-month-old rising resistance line amid overbought conditions of 14-day Relative Strength Index (RSI).

Sellers look for entry below October month high, at 1.30107, to take aim at November top surrounding 1.29842. Though, 20-SMA could support price to declines below 1.29357.

Should prices decline below 20-SMA, 61.8% Fibonacci retracement of March-September fall, at 1.28415, holds the key for the pair’s further south-run towards the November low near 1.27638 and 200-SMA at 1.26950.

On the contrary, Bull will target the May month high at 1.31760 an extended this high enables it to challenge 1.32700 and the yearly high around 1.33850.

Technical indicator

  • The Parabolic indicator has maintain a buy signal.
  • The Bollinger Band see bull-candle open outside the upper band, signal overbrought.
  • The Super-signal arrow appear above the green-candle signalling a Sell
  •  The RSI oscillator is flat above the overbought zone at 73.01.

Technical Analysis Summary

Order         Sell

Target          1.3100

Stop loss above 1.31650