• An overbought pound came off its 1.3207 Thurs high to close at 1.3100 Thurs

• Momentum readings are still overbought

• Pullback risk to the daily tenkan, currently 1.3040

• Upside breakout from the late March bear run is significant

• A buy on dips market while above the 10-day moving average

• The average is at 1.2967

• Key resistance now at the 1.3207 rally high

• GBP/USD Trading Page
GBP/USD daily candle chart:

(Peter Stoneham is a Reuters market analyst. The views expressed are his own.)