- GBP/USD’s weekly candle is indicating buyer exhaustion.
- The pair may consolidate in a 100-pip range in Europe.
GBP/USD is currently trading largely unchanged on the week at 1.3136, having hit a high of 1.3215 on Tuesday.
The long upper wick of the weekly candle, as represented by the pullback from 1.3215 to 1.3135, is signaling bullish exhaustion following a near 90-degree rally from lows near 1.1960 registered at the end of August.
Also, it represents a failure on the part of the GBP bulls to keep the pair above the resistance of the trendline connecting July 2014 and April 2018 highs.
The pair may consolidate largely in 1.31-1.32 range during the day ahead.
The spot had dropped to 1.3107 in early Asia on a key poll showing a sharp drop in Prime Minister Boris Johnson’s lead in Britain’s general election. Britons are set to vote on Dec. 12.
Weekly chart
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Trend: Bullish exhaustion
Technical levels
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