GBP/USD: RSI Indicates Sell Signal

GBP/USD weakens for the third consecutive day after failing to test the April 2022 high (1.3167), with the Relative Strength Index (RSI) indicating a textbook sell signal as it falls below 70.

GBP/USD Rate Outlook

A move below the 1.3000 (78.6% Fibonacci extension) handle may push GBP/USD towards the former-resistance zone around the June high (1.2848), with a break/close below the 1.2850 (61.8% Fibonacci extension) to 1.2890 (50% Fibonacci extension) area opening up the 1.2750 (50% Fibonacci extension) to 1.2760 (61.8% Fibonacci retracement) region.

However, GBP/USD stage further attempts to test the April 2022 high (1.3167) if it holds above the June high (1.2848), with a break/close above the 1.3140 (61.8% Fibonacci extension) to 1.3190 (100% Fibonacci extension) zone bringing the March 2022 high (1.3438) on the radar.