GBP/USD: potential for a bullish breakout – FXStreet

By FXStreet FXStreet (Guatemala) – Valeria Bednarik, chief analyst at FXStreet explained that the GBP/USD pair advanced up to 1.5248 at the beginning of the day, favored by a broadly weaker dollar across the board.

Key Quotes:

“The pair however, retreated from that fresh weekly high in the European morning, driven by demand of the American currency after dovish ECB’s president comments, falling down to 1.5173 ahead of the US opening. With no macroeconomic news coming from the UK, the pair traded purely on market’s sentiment, towards the greenback, recovering back ahead of the 1.5200 level by the end of the day.”

“Technically, the 1 hour chart shows that the price is hovering around a horizontal 20 SMA, whilst the technical indicators have turned flat around their mid-lines, lacking certain directional strength at the time being. In the 4 hours chart, the 20 SMA maintains a strong upward slope below the current price, whilst the technical indicators are resuming their advances well above their mid-lines, all of which increases chances of a bullish breakout for this Friday.”
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Source:: FX Street