GBPUSD appears overstretched
The British pound is trading close to the 1.3200 resistance level in early week trade against the US dollar, as traders await Tuesday’s vote on British PM Theresa May’s new Brexit deal. The GBPUSD pair retains a strong bullish bias while trading above 1.3170 level, although the MACD indicator on the four-hour time frame is currently extremely overbought. If sterling continues to rise, the 1.3290 to 1.3300 region is likely to be buyers short-term upside objective.
The GBPUSD pair is strongly bullish while trading above the 1.3170 level, key technical resistance is now found at the 1.3250 and 1.3300 levels.
If the GBPUSD pair trades under the 1.3170 level, a decline towards the 1.3130 and 1.3095 levels may occur.