$GBPUSD Evening Commentary

$GBPUSD closed higher on Monday as it extends the rally off November's low. The high-range close sets the stage for a steady to higher opening when Tuesday's night session begins trading. 

Stochastics and the RSI are diverging but are turning neutral to bullish signaling that sideways to
higher prices are possible near-term. If March extends the rally off November's low, September's high crossing at 1.6281 is the next upside target. Closes below the 20-day moving average crossing at 1.6052 are needed to confirm that a short-term top has been posted. 

First resistance is today's high crossing at 1.6213. 

Second resistance is September's high crossing at 1.6281. 

First support is the 20-day moving average crossing at 1.6052. 

Second support is the reaction low crossing at 1.5903.