The British pound sterling continued its bullish rally with prices briefly rising above the 1.3700 handle once again.
However, the intraday gains were quickly scaled back as prices pulled back later in the day. As a result, the GBPUSD is currently trading within the sideways range of 1.3700 and 1.3611.
The stochastics oscillator is currently overbought but is likely to head lower. This would mean that if the cable loses the support near 1.3611, then we expect to see price action falling back to the previous lows.
This would open up the way towards 1.3506 level of technical support.
In the medium-term outlook, we expect the GBPUSD to maintain a sideways range between 1.3700 and 1.3500.