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100-hour SMA challenges recovery

  • GBP / USD attempts a bounce, but the downside bias remains intact.
  • GBP / USD tests the 100 hourly SMA barrier on its way to recovery.
  • The RSI turns lower below the midline, limiting the bounce.

GBP / USD is struggling to extend the bounce above 1.3800, as the war between bulls and bears rages ahead of Fed minutes.

Risk-off sentiment, amid COVID concerns and pre-FOMC minute anxiety, keeps bullish investors on the sidelines.

The same can be seen on the GBP / USD 1 hour chart, while the 100 hour moving average at 1.3814 is limiting the recovery from Tuesday’s low of 1.3773.

Acceptance above the 100 SMA could revive interest from the bulls, which could fuel a further rally towards 1.3840, the confluence of the 50 and 200 hourly SMAs.

GBP / USD 1 hour chart

On the downside, a firm break below trend line support at 1.3795 could propel sellers, bringing Tuesday’s low back into view.

Lower down, the 1.3750 psychological level could offer some support for GBP bulls.

GBP / USD additional levels

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