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GBP/USD retracing from important resistance confluence

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Apr 19, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    With the risk-on sentiment across global financial markets, USD is witnessing a hard beating against most major currencies.

    Even as the Brexit referendum is constantly in the headlines, GBP/USD has been scaling higher and is now within striking distance of reclaiming 1.4400 mark. However, 1.4375-80 area marks an important resistance comprising of a short-term descending trend-line and 38.2% Fibonacci retracement level of 1.5240-1.3835 down-leg. A decisive break-through above this resistance should now open room for further near-term upside towards 1.4475.

    On the flip side, reversal from current resistance area and a subsequent weakness below 1.4345-40 area, is likely to drag the pair back below 1.4300 handle (1.4292-90). Sustained trading back below 1.4300 mark would confirm strong resistance near 1.4400 mark, making the pair vulnerable to further downside in the near-term.
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