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GPB/USD adds to gains during Asia session

FXstreet.com (Barcelona) - The GBP/USD is edging higher during the Asia session, up another 13 pips from the Friday close at 1.5486 last. The pair has maintained a firm bid in recent sessions, mostly boosted by the recent UK economic data, and finished the past week up 1.417%.

According to Val Bednarik at FXStreet.com, The GBP/USD maintains the bullish tone triggered last week by better than expected UK GDP, trading near the highs set so far at 1.5490. The hourly chart shows price holding above 20 SMA and indicators in positive territory, yet with not much strength at the time being. In the 4 hours chart indicators head higher despite in overbought territory, pointing for more gains ahead; key support comes at 1.5420, 38.2% retracement of its latest daily fall: as long as above the level, the upside is favored towards 1.5600.

The short term moving averages remain in bullish set up on the daily chart, with price above the upward sloping 9 and 20 dma’s. The RSI (14) completed a bull shift last Friday, closing above the 60 level for the first time since January 2nd, 2013. This could lead to further momentum buying early next week as the pair is now in the 40-80 bullish zone which should help support dip buying and keep pullbacks shallow.

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