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Forex pairs in this Article » GBP/USD
FXstreet.com (Barcelona) - While Sterling continues to advance against the Yen and Australian dollar, versus the US dollar it has given up the gains achieved at the start of the week.

Prices were capped out yesterday few pips above the daily pivot point and round figure at 1.6400, to turn back lower latter in the day were it is still basing around 1.6350. The downmove in progress is expected to unfold in a corrective pattern.

How strong has the move been?

The OB/OS Index is pointing to an neutral market in the hourlies. The RSI reads 42.64 at the moment and the ADX is at 14.04, indicative that price action has been in a stalemate in the recent periods. On the same GBP/USD chart, the 200-perdiod SMA is right now at 1.6380 offering a flat resistance in any attempt to rally.

How volatile has the GBP/USD been?

Standard deviation bands have a 76 pip width and is observed as being shrinking in the hourly chart, while the ATR(14) prints 7 pips. The average price movement for this session has been of 8 pips per hour in the last 4 weeks.

What price levels and patterns have to be considered?

The central pivot point is located at 1.6363. Pivot supports for this pairs are to be found at 1.6307 (S1), 1.6264 (S2) and 1.6208 (S3). Conversely, daily pivot resistances for this pair are to be found at 1.6406 (R1), 1.6462 (R2) and 1.6505 (R3). Special attention deserves the price range 1.6343-1.6377 where several technical levels are confluent today.
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