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Forex pairs in this Article » GBP/USD
FXstreet.com (Barcelona) - After a big recent run past multiple resistance levels, GBP/USD entered Wednesday’s session overbought and poised for a correction / consolidation. Weak Chinese data may have started the downward action.

GBP/USD has more to go on the upside, but a pause could refresh

On the back of a slew of recent DXY-bearish data in the US and better numbers coming out of England’s economy, the GBP/USD has been on a powerful run from 1.48124 back on July 9th to 1.53585 currently. The July 9th low came right before Ben Bernanke gave his market-changing speech where he let the world know that his foot was not necessarily coming off the proverbial gas pedal just yet.

GBP/USD remains overbought but poised for more gains eventually

Technicians say that the GBP/USD is likely destined for a continued rally all the way up to 1.5435 before major “correction resistance” is tested. However, they note that the cross is short-term overbought and may be due for a pause in the upside momentum. Short-term resistance for GBP/USD comes in at Tuesday’s high of 1.5391. Above that comes the key “correction resistance” level of 1.5435. Short-term support for GBP/USD comes in at the previous resistance at 1.5304 followed by the 7/11 peak at 1.52211.
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