GBP/USD Analysis: Changes direction
|The slight appreciation that guided GBP/USD since last Wednesday changed tremendously mid-Friday when the Pound surged against the US Dollar for three consecutive hours, thus closing the session with a 158-pip gain. This appreciation, however, was not sustainable, as the power game between bears and bulls normalised. On Monday morning, the Sterling demonstrated increasing signs that the upward momentum was over, as technical indicators were starting to retrace from the strongly bullish area. Thus, a rising wedge patter was revealed. It is not yet said that the pair will depreciate with high velocity, as there are no significant data released today that could pressure it either direction. Thus, it is likely that the Sterling remains fluctuating around the 20-hour SMA in the 1.3100/10 area.
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