GBP/USD 1H chart 2/7/2013 10:40AM EST
Short-term bottom: GBP/USD has been in a tight range since later part of the 2/5 session and into the 2/7 session, where it finally rallied above that range resistance of 1.5678. The break however stalled after the BoE meeting.
Bearish stance: The 1H chart shows the RSI push back above 70, showing lost of bearish momentum, turning it to neutral. If the RSI can hold above 40 and push back above 70, it would start to show bullish momentum. Price remains under the 200-hour SMA, below the previous high around 1.58, and essentially respected a falling February trendline. a push above these factors would show lack of bearish conviction.
A push back below 1.5675 can put pressure back to 1.5630, and below that, a bearish continuation.
Fan Yang CMT is a forex trader, analyst, educator and Chief Technical Strategist for FXTimes – provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources.