The GBPUSD lacks definition on a mid-term horizon, but it has enough volatility to continue to fade the extremes. The sell limit we planted at 1.3120 was a quick winner in the early European session bringing +90 pips to the balance. The triple intersection proved to be a sweet spot for sellers.
We now expect the market to encounter a negative surprise on the upside, close to the 1.3285 area. The ideal setup would involve another vertical session towards that confluence of an intermediate ascending line with horizontal support.
On the other side, aggressive bulls can use rejections off the descending dynamic support line for long entries with relatively right stops around the 1.2700 figure. As always, we will lay out details on the FX Insights panel.
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