The pound's rally to a four-month high against the dollar isproving too much for currency traders unsure whether Mark Carneywill step up stimulus efforts when he takes over as Bank of England(BOE) governor next month.

Sterling's failure to extend its advance after rising above its200-day moving average on June 13 may be a signal its winningstreak is ending, according to Barclays Plc. The pound is alsoapproaching a key Fibonacci retracement level where sell orderstend to be clustered, while the stochastic oscillator crossed athreshold that implies an imminent reversal.

“We're at a point where sterling is a bit stretched,” KenDickson, an Edinburgh-based director for foreign exchange atStandard Life Investments Ltd., which oversees about $281 billion,said in a phone interview on June 17. “It could be pretty difficultto get beyond here in the near term.”