GBPUSD appears overstretched
The British pound is trading around the 1.3200 level against the US dollar, following a sharp technical reversal the 1.3280 area. The GBPUSD pair is starting to look overstretched to the upside and may start to correct back towards the 1.3100 level. Looking at the upside potential, sustained gains above the 1.3280 level could see the GBPUSD pair test towards the 1.3375 resistance zone.
The GBPUSD pair is only bullish while trading above the 1.3170 level, further upside towards the 1.3300 and 1.3375 levels then seems possible.
If the GBPUSD pair trades below the 1.3170 level, key support is found at the 1.3100 and 1.3050 levels.