GBP/USD +212 From the 1.3000 Bounce - What's Next?

一昨日Cable pushed a strong bullish move after the support test around the 1.3000 handle last Wednesday, very similar to EUR/USD. But while EUR/USD pushed a bounce of as much as 1.23% from last Wednesday's low, GBP/USD was able to stretch a bit more with a move of as much as 1.63%. This is on top of the fact that GBP/USD has recently established a fresh two-year high while the argument can be made that EUR/USD is still within the 20-month range, which will be the case until the 1.1275 high from last year is taken-out.

This can keep GBP/USD as a more attractive candidate for USD-weakness scenarios but at this point, the move has already grown stretched, as shown from four-hour RSI pushing into overbought territory. There's also a descending trendline just overhead. This could be a tough spot to chase the pair higher given how quickly buyers have pressed from last Wednesday's lows.

As can be seen from the prior instance of overbought on h4 GBP/USD, RSI is not a great timing indicator. But it can help with context in showing a move that's come on rather quickly. This can also highlight the fact that pullbacks could be of interest for bullish continuation and the same spot around the 1.3150 area could be of interest for such. - js