The pound weakens as fears of a recession in the UK take hold. The pair’s recovery accelerated after it broke above this year’s high at 0.8510. A bullish reversal in the medium-term could be in the making as sentiment turns around. The RSI’s double top in the overbought area may temporarily limit the rally. The bulls may look to accumulate at the next retracement. 0.8510 is the closest support and 0.8440 an important demand zone for the latest rally. A bounce above 0.8590 would trigger a runaway rally towards 0.8700.
