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GBP/USD: Technical Analysis

Published 07/27/2021, 04:39 AM

After moving within 30 hours in a narrow range, the GBP/USD pair finally managed to break through the area of 1.3750/1.3800 and consolidate above it. Thus, the pound sterling has now almost fully recovered from its early losses posted between July 16 and 20.

Following a temporary slowdown, the pair seems to have gained momentum, with an intraday movement of 100 pips. Judging by impulse waves in the market, the volume of long positions is growing steadily. It signals a bullish trend.

In premarket European trade, the pair was trading sluggishly. However, this was just a short break before new strong upside momentum.

If the price consolidates above the level of 1.3835, it is likely to extend gains, approaching the resistance level of 1.3900.

According to the M1 and H1 trading charts, technical indicators generate a buy signal as the area of 1.3750/1.3800 has been broken upwards.

GBP/USD Daily Chart

InstaForex Group

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