GBP/USD points to limited gains

Source: Dukascopy Bank SA
Positions Today Yesterday % Change
Longs 54% 53% 1.85%
Shorts 46% 47% -2.17%
Indicator 4H 1D 1W
MACD (12; 26; 9) Buy Buy Buy
RSI (14) Neutral Neutral Sell
Stochastic (5; 3; 3) Neutral Sell Sell
Alligator (13; 8; 5) Neutral Buy Buy
SAR (0.02; 0.2) Sell Buy Buy
Aggregate

Similarly to other major currencies which are trading against the US Dollar, downside risks were driving the Pound during the previous session. Thus, it was unable to re-test its 1,5-year high of 1.43. 

The pair found support for at the 55-hour SMA for a brief period of time; however solid US fundamentals at 1330GMT resulted in a southern breakout of this moving average and eventually the longer-term SMAs, as well. In addition, the bottom boundary of the prevailing seven-week ascending channel also surrendered. 

Technical indicators flash bullish signals. However, the expected appreciation is likely to be delayed or even stopped by the aforementioned SMAs in the 1.4170/1.4200 area. 

In terms of support, the Pound is restricted by the monthly PP at 1.40.

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