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Forex pairs in this Article » GBP/USD (Barcelona) - GBP/USD tested support at 1.5907 again Wednesday and has since exploded higher. Even after Thursday’s big upside, technicians say the ceiling for this move is all the way up at 1.6432.

GBP/USD had a huge up day on strong British data, a weak Dollar and technical forces

The GBP/USD was bouncing off of key support starting a few sessions ago. However, the upside picked up momentum exponentially when British retail sales data came out well ahead of expectations Thursday and global managers felt secure enough in the idea of no Fed tapering to buy Treasuries and sell the greenback.

Friday, there’s no data due out to speak of, so traders will have to rely on bullish technicals and several Fed Head speeches for directional guidance.

Technical outlook for GBP/USD

Technicians say that GBP/USD bounced successfully off of key “correction support” at 1.5907. New support is the 10/8 peak of 1.6123. Elliott Wave technicians say GBP/USD is likely in the midst of wave 5 higher with a projected target of 1.6432. Shorter term resistance comes in at the 10/1 peak of 1.6259.
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