GBP/USD upside favoured towards 1.55 – FXStreet

FXStreet (Barcelona) - Valeria Bednarik, Chief Analyst at FXStreet, shares the technical outlook for GBP/USD, expecting the pair to move towards 1.5500 levels on a break above 1.5440, with buyers likely to surge around 1.5350 levels.

Key Quotes

“From a technical point of view, the 4 hours chart shows that the price develops well above a bullish 20 SMA that stands now around 1.5350, former highs and the key support level for the upcoming hours.”

“Indicators in the same time frame have lost their upward slope around overbought territory, and now retrace from them, although remain well above their midlines.”

“A break above 1.5440 should favor an extension towards the 1.5485/1.5500 price zone, while buyers may likely surge on approaches to the mentioned 1.5350 level. A break below this last however, should signal a deeper downward correction, that can extend down to the 1.5290 price zone.”

“Latest BOE's comments suggesting the kingdom is closer to rise rates than to extend their facility program, support the Pound even in risk environments, meaning falls on risk aversion may remain limited compared to other currencies.”

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