By Anton Eljwizat – The sustained upward movement of the GBP/USD pair doesn’t seem to be receiving much resistance lately. As I will demonstrate below, the price of GBP/USD may very well be heading for a correction, and it might have the potential of reaching towards 1.5250 in the coming days.
• The technical indicators that are used are the Relative Strength Index (RSI), and Slow Stochastic and Williams Percent Range.
• Point 1: There is a “doji” candlestick formed in the chart, indicating that a reversal should take place.
• Point 2: The Relative Strength Index (RSI) indicates that the price of this cross currently floats in the overbought territory, signaling downward pressure.
• Point 3: The Slow Stochastic signals a bearish course for the pair is imminent, as the Slow Stochastic oscillator is set to go reverse course anytime soon.
• Point 4: The William’s Percent Range also supports the downward direction.
• Forex traders can take advantage of this imminent downward movement by entering short positions at an excellent entry price.
GBP/USD Daily Chart
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