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Can GBP/USD Push Higher?

September 14, 2021

  • GBP/USD broke resistance at 1.3790 and continued to climb.
  • Support tested near 1.3800.

The British Pound, US Dollar pair started to climb after the recent low near 1.3726 on September 8th. GBP/USD broke resistance at 1.3800 and continued to move higher.

GBP/USD 4-Hour Chart (Trend: BULLISH)

On the 4-hour chart, the pair also broke a key bearish trend line with resistance near 1.3790. It has successfully moved above the 1.3800 level, and both the 100-MA (red) and 200-MA (blue). The quote pushed higher above 1.3880 and tested resistance at 1.3888 before correcting lower. As the pair corrected lower, it broke support at 1.3850 and tested support at the 50% Fibonacci retracement level of the upward move from the swing low of 1.3726 to the swing high of 1.3888 high. 

If bulls can now push the quote higher, there will be some initial resistance near the 1.3865 level. Beyond this, there is further resistance near 1.3880. A successful break above this could see the GBP/USD pair continue to rise towards the 1.4980 level, last seen on July 30th.

In contrast, if bears push the quote lower, they will first need to break below the 200-MA (blue) and the 1.3800 support level. Below this there is further support near 1.3765 and the 100-MA (red). Further losses could see the pair fall down towards support at the 1.3600 level, last seen on August 20th.

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