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Sterling

GBP/USD -5/3/2021-• Ascending channel holding quite well • Strong dollar is driving most pairs down • Bears on temporary hold near the trend line support, and the 240 4-hour moving average at 1.37700 • Back in 2017, sterling went up to 1.43, few pips away from 2021 highs and then retreated back to 1.37 before going up again towards 1.44 • In technical analysis, history repeats itself. If this assumption is correct, the pair might go down to 1.37 before going up again
by RamziAbouAbdallah-CMT
GBPUSD: Approaching Strong SupportGBPUSD is about to face very strong support at the 1.39 demand zone. This is strong support made up of the middle band, the bottom of a rising channel, and a rising trendline of the KD indicator. We expect some significant rebound to occur as it pierce deeper into the demand zone at about 1.3850. However, the plunge from last week was caused by strong rejection from a 5.5-year resistance level and the KD indicator is showing an overbought sign. Therefore, we can also expect more selling pressure as it climbs back to about 1.4070. If continuous support or a fakeout is seen at the demand zone after a retest, we can expect GBPUSD to resume an upward trend and eventually break higher. Otherwise, if the demand zone fails to hold and the price closed below 1.38, we can start to look for a selling opportunity towards the demand zone at 1.33.
Long
by AlgoVenture
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