Gbpusd Next Resistance Is Near

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Gbpusd Next Resistance Is Near

Gbp/Usd Next Resistance Is Near 1.2780 - Scotiabank

Chief FX strategist from Scotiabank believess that the next resistance for the GBP/USD is really far away from the current levels. According to them, the level is near 1.2770 - 1.2780 will serve as a strong resistance if the GBP/USD turns higher.

Right now, GBP/USD is trading a little higher for the day, with eyes set on the resistance at 1.2775. However, the trading calendar is thin, and there isn't any big data or development from the UK's side.

Buildup Of Long Gbp Positions

So, the recent gains in the GBP/USD are a sign of the accumulation of long positions in the GBP. This is because the spot is showing signs of stabilization near the 1.27 handle with eyes set on 1.2780 and then 1.2800.

Although the GBP/USD has been steady right now, the downtrend that started above 1.30 is still intact. So if the GBP/USD turns lower as part of the long-term trend, the pair will support around 1.26.

It is important to point out that the 100 and the 200 SMA are also converging in the 1.26s. The 100 SMA is seen near 1.2684 while the 200 SMA is located at 1.2658. So, it is safe to say that a break below the 1.26 will not be that easy for the GBP/USD bears.

Right now, GBP/USD is trading near 1.2710, with the nearest support at 1.2700 in the short term. Given the close proximity to the 1.2700 support, there's a good chance that the bears will try once again to break it and push the pair lower.

On the way up, a break of 1.2730 will increase the chances of touching the 1.2780 resistance once again. However, if the 1.2700 handle is lost to the bears, the 100 SMA and the 200 SMA will get back into focus as they are important dynamic resistance levels.

In the last 6 months, the GBP/USD has been up by 0.74% while the return for the YTD is around -0.15%. In short, it seems that the GBP/USD is very close to a turnaround and has the potential to turn positive once again.

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