GBPUSD: A pullback is possible.
GBPUSD reached very close to the 1.32 level but pulled back very sharply during the NY trading session on Friday.
Looking at the daily chart, GBPUSD's rally looks overstretched at the moment. So, it's likely that we can see a deep pullback in GBPUSD over the next few days.
However, we need some more confirmation before selling this. Price is still above the crucial moving averages on the hourly chart. If price dips below the 100H EMA, then we can say that a short-term trend reversal is taking place.
Right now, we must wait for a good entry. However, if price reaches the resistance level between 1.3150-1.3200, I will take a small risk and sell GBPUSD.
Looking at the daily chart, GBPUSD's rally looks overstretched at the moment. So, it's likely that we can see a deep pullback in GBPUSD over the next few days.
However, we need some more confirmation before selling this. Price is still above the crucial moving averages on the hourly chart. If price dips below the 100H EMA, then we can say that a short-term trend reversal is taking place.
Right now, we must wait for a good entry. However, if price reaches the resistance level between 1.3150-1.3200, I will take a small risk and sell GBPUSD.