Gbpusd Trades Near Important Level

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Gbpusd Trades Near Important Level

Gbp/Usd Trades Near 1.3000, Eyes Next Target At 1.3041

GBP/USD once again resumed its bullish rally on Tuesday as the strength of the US dollar started to fade away. Additionally, the increased geopolitical tension in the US has also triggered the flight of funds towards safety.

For now, the GBP/USD pair is seen trading near 1.2985, only 15 pips away from the 1.3000 resistance. For the day, the GBP/USD pair is up by almost 0.24%, a sign of the US Dollar's weakness.

Momentum Favors Gbp Bulls

Given the advance of GBP/USD since the last week, the 1.3000 is now within the reach of the traders. However, let's not forget that the GBP/USD is also sitting at a 12-month high near the 1.2995 handle.

The momentum indicator shows that bulls are still in control despite the overbought readings. Many times, an overbought reading is nothing but a sign of extreme bullish pressure that can continue for an extended period of time.

On the way up, the most relevant resistance level for the GBP/USD is 1.3000. According to analysts, a successful break of this level will turn it into support and allow the GBP/USD to target the 1.3041 resistance. Once that level is cleared, the next stop will be 1.316, followed by the 1.3142 resistance level.

On the way down, the GBP/USD can move towards 1.2901 if the sellers dominate the market. Any more selling and the level around 1.3860 will get into focus as that's the peak from 12th June. Next up is the support at 1.2779 and then at 12750, which could stop the GBP/USD sellers.

Over all, the sentiment favors the GBP against the USD as we go through the rest of the trading days this week. The economic data last week showed that the US is now moving towards a dovish monetary policy on account of soft CPI readings.

That's why it is safe to say that both the short and medium-term trends now favor the GBP/USD bulls over the bears.

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