The British Pound plummeted at the beginning of a day, down to 1.4130 against the greenback weighed by the decline in oil prices. But the GBP/USD quickly bounced back, and trades below the 1.4200 level as the market prices in the latest developments in the black gold.

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A positive mood surging across the different markets, with oil and stocks recovering the ground lost at the opening, should support the GBP in the short term. From a technical point of view, the 4 hours chart presents a mild positive tone, as the price has accelerated above a bearish 20 SMA, while the technical indicators have crossed their mid-lines towards the upside. In the same chart however, the 200 EMA is around 1.4225, and is the level to break to confirm a steeper advance this Monday, up to the 1.4260 region.

In the case that the pair resumes its decline, it would need to break below the 1.4120/30 support zone to confirm a downward continuation towards the 1.4050 region, where buying interest is expected to contain the decline.


View the live chart of the GBP/USD


 

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