FXStreet (Łódź) - FXStreet Chief Analyst Valeria Bednarik observes that the GBP/USD rose to a new yearly high of 1.7179 earlier on Friday, before dropping lower again.
"Nevertheless, Pound bullishness is undeniable, and after yesterday’s price behavior, is clear buyers are waiting on dips to add."
"The 4 hours chart shows indicators hovering around their midlines, with price aiming to break below its 20 SMA that anyway maintains a strong bullish slope."
"A break below 1.7095, yesterday’s low, should lead to a test of the 23.6% retracement of the latest bullish run at 1.7060, yet selling is not recommended, even on a break below this last: rather wait for a some exhaustion on any bearish corrective movement and fade the move."
"To the upside, 1.7180 continues to be the level to watch, and some steady gains above it should lead to an advance up to 1.7220 price zone in the short term."