GBP/USD – Correction likely above Asian session high
Pair ended at 1.2436 on Friday after having recovered from the flash crash on Friday. The spot traded around 1.24 levels at the time of writing.
On the 4-hr chart, we have bullish money flow divergence, while the daily RSI has hit the oversold territory.
Hence, a break above 1.2445 (Asian session high) could yield a corrective rally to 1.25 – 1.2586.
Note that we are operating in a largely uncharted territory. Short-term and long-term averages are overstretched. Overall, it appears the spot is likely to turn sideways in the short-term.
On the 4-hr chart, we have bullish money flow divergence, while the daily RSI has hit the oversold territory.
Hence, a break above 1.2445 (Asian session high) could yield a corrective rally to 1.25 – 1.2586.
Note that we are operating in a largely uncharted territory. Short-term and long-term averages are overstretched. Overall, it appears the spot is likely to turn sideways in the short-term.
