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GBP/USD undergoes corrective process

An upward and over extended market, set against the backdrop of a downtrend may swing the GBP/USD buyer-seller pendulum back towards the bears again.

GBP/USD was in sell mode until a recent move changed the shape of the price structure. The 4hr RSI was on average printing below 50% over the last three weeks and recently broke above the 60% mark. This can be considered overbought territory in the context of a full-fledged bear market. Therefore, the present corrective rally is vulnerable for a turnaround from here.

Further, the 50SMA is still below the 200SMA on 4hr charts. However, should the pair extend its recovery from multi-week lows into a new trend, traders may require a contingency plan in place.

GBP/JPY undergoes corrective process

GBP/JPY undergoes corrective process
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EUR/USD headed toward highest close in 2-weeks

EUR/USD peaked during the American session at 1.1274 and then pulled back modestly only to rise back toward the highs. Currently is testing the high as it trades around 1.1270, holding a bullish tone.
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