GBP / USD hit new annual highs near 1.33 at the start of the European session. Cable is now trading just above the 1.3280 level, up 0.60% on the day, but Friday’s daily and 4-hour charts indicate overbought conditions, as the analyst notes. FXStreet Yohay Elam.
“The relative strength index on the 4-hour chart is flirting with 70, indicating overbought conditions and countering the upward momentum and the fact that the cable is trading above the simple moving averages of 50, 100 and 200. “
“The 1.3290 daily high is the highest since December 2019 – an eight month high. Above this level the next target is 1.3330, which was a high at the time. The post-election high of 1.3510 is the next level to watch. “
Support is at 1.3265 last week high followed by 1.3180 which is the daily low. It is followed by 1.3150, which is capped on the higher Pound / Dollar. ”
“It is essential to note that the RSI on the daily chart is also approaching 70, entering overbought conditions.”