GBPUSD Pulls Back After Strong Gains

The British pound sterling is posting losses following the solid gains made from earlier in the week.

After briefly rising close to 4^th Jan highs near 1.3702, the cable gave back the gains intraday. This has led to a bearish close.

For the moment, the bias still remains to the upside. Price action could potentially form a reversal near the trendline around the 1.3600 level.

If price crashes through this level then we could see a move back to the 1.3500 handle.

With the Stochastics oscillator also moving out from the overbought levels, the downside is likely to prevail in the near term.

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