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GBP/USD: upside has strong resistance ahead

FXStreet (Guatemala) - GBP/USD is currently trading at 1.5328 with a high of 1.5383 and a low of 1.5298.

GBP/USD is currently on the bid in a weak dollar environment, recovering from the lows seen earlier in the week down at 1.5137. The major rose with the 20 and 50 SMA on the 4hr were crossing up to meet the 200 SMA at 1.5324 today, while at the same time, the price penetrated the 200 DMA at 1.5319 and the 20 DMA at 1.53009.

The tone is bullish but on a short term basis only for now as still remaining below key technical levels. At the same time, the BoE's minutes revealed concerns over China and parts of the EM's and there are less chances of a rate hike to come in the near term, weighing on the pound.

GBP/USD upside limited?

Technically, Karen Jones noted that GBP/USD’s bounce is reaching tougher resistance and we should see this now start to struggle. "We note that the Elliott wave count is more positive and while the market intraday holds over 1.5230/25 there is a risk of a move towards the 1.5442 55 day ma and the 1.5519 cloud."

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