GBP/USD Classical 07.29
GBP/USD: Gains have been quite impressive over the past few sessions with the market taking out key resistance by the 200-Day SMA and closing above the longer-term SMA. This is the first time the market is above the 200-Day since January and could potentially warn of a major shift in the structure. However, we would like to see a weekly close above the SMA to adopt a bullish outlook and until then, selling into this strength is the preferred strategy. A doji close on Wednesday helps to strengthen our bearish outlook from here and we look for a break back and close back below 1.5545 to confirm and accelerate.
Written by Joel Kruger, Technical Currency Strategist for DailyFX.com
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