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GBPUSD trading above the 200 MA

February 03, 2019

The GBPUSD pair has seen a strong rise in 2019 so far. The technical picture on the daily chart even suggests that there's more upside ahead.

On the chart below the indicators made a positive divergence, which resulted in a big recovery that started at the end of 2018. The pair rose above the 21 EMA and even broke above the downtrend line of the channel. Last week we also saw a close above the 200 MA.

gbpusd030219.jpg

Chart: Tradingview

The pair has clearly broken the process of lower tops and even touched 1.3200. GBPUSD is now facing a correction and we will look for the pair to bounce and trade back towards new highs. On the downside the first support is the 200 MA and the broken trendline. After that there's also the 21 EMA. 

Should we close below the 21 EMA, the techical picture will start to weaken. If we break below 1.2830 the downtrend will probably resume.

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