Sasha Singh
All posts from Sasha Singh
Sasha Singh in Sasha Singh,

GBPUSD : Trading in Over Bought Zone

GBPUSD is surging and currently trading near 5 year highs. Weaker than expected U.S. first quarter growth weakened US dollar and pushed the pair to new highs. The pair is currently trading near five year highs. Another data from U.K. showed that the manufacturing activity in U.K. expanded at the fastest rate in 5 months in April, giving a sign of wider recovery. On the daily chart, GBPUSD seems like consolidating within a rising wedge and currently near the resistance of the wedge. From the stochastic oscillator it can be seen that the pair is in the overbought zone and selling pressure might push the pair down from such high level soon. A rising wedge also gives bearish signal, therefore the pair might break the support trend line and move down once it reaches the apex.