The British pound sterling is looking to build upon the gains from Monday.
However, as price approaches the 1.3300 handle, the momentum is losing steam. This could see prices pulling back in the near term.
Any downside declines will be firmly stalled near the 1.3122 level of support.
This could mean that the GBPUSD might settle into a sideways range between the said levels for the moment, given the psychological importance of the 1.3300.
To the downside, in the event of prices failing near the 1.3122 level, we could see a decline back to the 1.3000 support area.
For the moment, the Stochastics oscillator is likely to signal a short term pullback from the current highs.
