GBP/USD Pullback, Let's See How Badly Bulls Want It

It's been a strong run in Cable since the 1.3000 test two weeks ago, with the pair tacking on more than 400 pips, trough-to-peak. That run also produced another overbought RSI reading on the daily chart of GBP/USD which would be the fourth such instance this year. Each of those prior events have led-in to pullback and, so far this morning, that's what we're seeing.

But this doesn't mean that the pair has to reverse. As a matter of fact this may remain as one of the more attractive major pairs if we do see USD-bears press again, but that remains a moving variable.

At this point bulls have an open door to bid trend continuation with price pulling back for a support test at prior resistance, from around the 1.3332-1.3341 zone. If that can't hold, and prices do show a larger pullback, the next significant spot of support potential is around the 1.3250 psychological level. - js