GBPUSD maintains a short-term bullish structure after rising from the August 15 low of 1.2864 to the September 6 high of 1.3444. However, upside momentum has faded and there was a rapid drop yesterday to 1.3318.
Weaker momentum is highlighted by the drop in the RSI indicator, which has levelled off, suggesting the market could consolidate in the near term. The 1.3300 level is eyed.
Unless GBPUSD can move and stay above 1.3400 in the near term, there is a risk of the market topping at 1.3444 and consequently prices would fall back into the range to return to a neutral bias. Looking at the bigger picture, the medium term bias is neutral as the market has been in a range since June 24.
Origin: XM
