Last week’s strong uptrend has pushed the pound to touch the 200-day SMA, which is going to make a move to the upside difficult. On the 4-hour chart, you can already see the candlesticks forming exhaustive candles and moving sideways, with the stochastic indicator in the overbought region. In the meantime, the price may keep moving in an oscillating pattern until economic news is released within the week.
The fundamentals of this pair are pretty clear with the main determinants being the interest rate change in the US and the triggering of Article 50. Last week on the 15th of March, the FED hiked interest rates to reach 1% and this caused the dollar’s strength to slide against the pound.

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