GBPUSD has limited upside potential in the short-term

GBPUSD has made an upward move from 1.2250 to 1.25. This upward move is in its final stages and has limited upside potential. Although key support of this new upward move is at 1.2250, I believe bullish traders should be patient and wait for a pull back to come first.


Red rectangle - possible reversal area

Green lines - most probable expected path of price

GBPUSD is in an short-term bounce. In order for this bounce to unfold into something bigger to the upside I believe we should soon see a pull back and the formation of a higher low. This would give bulls enough power for a move higher. The RSI is approaching overbought levels in the 4 hour chart. This by no means implies we should turn bearish GBPUSD. We remain bullish as long as price is above 1.2250.

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