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GBP/USD rallies to near 3-week tops, closer to mid-1.2700s

   •  The USD bulls remain on the back-foot and help regain traction.
   •  Technical buying above 1.2710 further accelerates the up-move.

The GBP/USD pair finally broke out of its Asian session consolidation phase and rallied around 70-pips to near three-week tops.

The latest leg of a sudden spike lacked any obvious fundamental catalyst and could be solely attributed to some renewed US Dollar selling pressure during the early European trading session.

Expectations of a dovish Fed next year, along with a partial US government shutdown kept the USD bulls on the defensive and turned out to be one of the key factors driving the pair higher. 

Adding to this, possibilities of some intraday trading stops being triggered, on a sustained move beyond the 1.2700-1.2710 hurdle, further accelerated the up-move amid relatively thin liquidity conditions.

Hence, it would be prudent to wait for a strong follow-through price action before confirming a near-term bullish breakout, backed by genuine buying rather than a possible stop-run.

Technical levels to watch

GBP/USD

Overview:
    Today Last Price: 1.2744
    Today Daily change: 45 pips
    Today Daily change %: 0.354%
    Today Daily Open: 1.2699
Trends:
    Previous Daily SMA20: 1.2661
    Previous Daily SMA50: 1.2793
    Previous Daily SMA100: 1.2899
    Previous Daily SMA200: 1.3191
Levels:
    Previous Daily High: 1.271
    Previous Daily Low: 1.2635
    Previous Weekly High: 1.2778
    Previous Weekly Low: 1.2616
    Previous Monthly High: 1.3176
    Previous Monthly Low: 1.2723
    Previous Daily Fibonacci 38.2%: 1.2682
    Previous Daily Fibonacci 61.8%: 1.2664
    Previous Daily Pivot Point S1: 1.2653
    Previous Daily Pivot Point S2: 1.2606
    Previous Daily Pivot Point S3: 1.2577
    Previous Daily Pivot Point R1: 1.2728
    Previous Daily Pivot Point R2: 1.2757
    Previous Daily Pivot Point R3: 1.2804

 

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