Sterling Remains In Bullish Trend, But For How Long?
The GBP/USD is back threatening resistance at 1.5076-38.2% Fibo of 1.6455-1.4234 where we also see a descending trend line. The pair is trading higher after finding support at a rising shorter-term trend line which could signal that the current rally may continue. As long as the greenback is trading as a safe haven then I continue to see downside risks for the pair with growth expectations dimming for the UK and global economy. Yet, there are still several technical indications that more upside potential exists including the 20-Day SMA at 1.4790 on the verge of crossing above the 50-Day SMA at 1.4788. Therefore, I will wait for a break below the 50-Day SMA before taking a short position or a move above 1.5150 for a long.
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