• Exhaustion signals as GBP/USD stalls after a 400-pip rally, with RSI indicating overbought conditions.
• A daily close below 1.3200 could trigger a pullback, with support levels at 1.3130, 1.3100, and further down at 1.3043.
• If the pair breaks above 1.3230, resistance levels to watch are 1.3250 and the psychological 1.3300 mark.

The Pound Sterling begins the week on a positive note, yet remains hovering around the 1.3200 figure, unable to break last Friday new year-to-date (YTD) high of 1.3230, and trades at 1.3204 almost flat.

GBP/USD Price Forecast: Technical outlook

Exhaustion is the name of the game for the GBP/USD. After achieving a 400-pip run that started on August 15^th, the pair has failed to extend its gains after hitting a multi-year peak at 1.3230. Today’s price action is forming a ‘doji,’ which indicates indecision amongst buyers and sellers.

Momentum shows buyers are losing steam as the Relative Strength Index (RSI) remains overbought. Therefore, if the GBP/USD achieves a daily close below 1.3200, that could pave the way for a deeper pullback.