- GBP/USD snapped a five-day winning run on Friday,
- RSI’s above-70 reading gained credence with Friday’s drop.
- A pullback to the 5- day average support could be seen.
GBP/USD is currently trading at 1.3145, representing a 0.10% gain on the day.
The pair fell 0.19% on Friday, snapping the five-day winning streak.
Friday’s drop also validated the overbought or above-70 reading on the 14-day relative strength index (RSI).
As a result, a pullback, possibly to the 5-day moving average (MA) support at 1.3106, could be in the offing. A bounce from the 5-day MA could yield a convincing move above Friday’s high of 1.3165.
Prime Minister Boris Johnson’s Conservative Party has extended its lead over the Labour Party to 14 percentage points from 9 percentage points seen a week ago, according to an opinion poll by Survation for ITV.
So, a strong bounce from the 5-day MA cannot be ruled out.
Daily chart
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Trend: Pullback likely
Technical levels
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