Pound to US dollar exchange rate outlook clouded as technical indicators suggest GBP-USD is in overbought territory

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Joshua Mahony at Alpari UK says he is however forecasting further losses for GBP-USD from here:

"Cable trades lower today off the back of significant upside after yesterday’s poor US PMI figure. The pair have subsequently pushed higher, finding resistance at the 61.8 Fibonacci retracement and subsequently closing around the 50.0 retracement at 1.53.

"This current move seems to be a repeat of the previous trend whereby the losses during December-March were retraced by 50% prior to a further move back to the downside.

In this instance, the pair have found resistance at 50% of the previous downturn and I expect to see further losses over the coming period.

"This is given further credence by the existence of both stochastic and CCI indicators being in overbought territory."

Geoffrey Yu at UBS says:

"The recent advance found resistance at 1.5378. A closing break above which would be positive, signalling scope for a move upside to 1.5606. Support is at 1.5169 ahead of 1.5009."

Analysts at Easy Forex are also forecasting declines for GBP/USD saying: "Pivot Point 1.5385 with a preference to go SHORT at 1.5385. Sentiment is 59% of deals to buy GBP."

However, over at Trading Central the upside is forecast to prevail:

"Long positions above 1.523 with targets @ 1.5375 & 1.541 in extension. Alternative scenario: Below 1.523 look for further downside with 1.515 & 1.511 as targets.

"The pair is pulling back on its support ahead of a rebound."