British Pound Technical Outlook

There is no change to the bigger picture pattern in which the rally from 1.3500 is a 4th wave that will eventually be fully retraced. As mentioned last week “although the rally is extended, there is no sign of a top yet.” The next level of potential resistance is 1.6680-1.6830. This is a former 4th wave price extreme and 50% retracement of the decline from 2.0162. RSI is above 80 on the daily so beware of a pullback prior to completion of the larger advance.