GBP/USD RSI in overbought territory

FXStreet (Guatemala) - GBP/USD is continuing on the bid and is pulling up towards the 1.66 territory. However, RSI reads that momentum is slowing and could signify that the pair has run it's course for the time being.

GBP/USD rallied from 1.6440 in the blink of an eye in two 5-minute sticks until it met supply and a drift across to 1.6520. The pair has since been climbing higher to test the 1.66 handle but has so far found offers protecting the 1.6590’s.The theme of the markets in Europe have been all about Sterling which is nicely bid with analysts at major banks shifting on their expectations of a hike to come in as soon as Q2 2015. “On balance, the risks around our forecast for the first Bank Rate hike in Q3 2015 have shifted towards an earlier rise (ie, Q2 2015)”, explained analysts at The Royal Bank of Scotland.

GBP/USD RSI (14) above 70

RSI (14) reads 70.26 and signifies the momentum on this one is stalling. We may require a bout of Asian bulls to come to the table to see this through the handle or indeed some disappointments from tomorrow’s jobless numbers and retail sales from the US.

GBP/USD DMA’s

The 20 DMA is 1.6446, the 50 DMA is 1.6421 and the 200 DMA is 1.5849.