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GBP/USD Rounding Out a Bottom; Fade the Rally

The GBP/USD is bearish, but found support at 1.5034 last week. Since then, it has been consolidating, and it has put in another support at 1.51 after the NFP report. This week, after disappointing UK inflation report, the GBP actually showed resilience, holding GBP/USD above the 1.51 support and pushing against the 1.5190 resistance.

GBP/USD 1H Chart 1/14
(click to enlarge)

This week, GBP/USD is establishing another higher support at 1.5145 and price broke above 1.52 as well as the 200-, 100-, and 50-hour SMAs. The momentum is not that clear, but there is a slight bullish bias as the RSI tagged 70 but failed to tag 30.

With a rounded bottom put in place, the GBP/USD is poised for a bullish outlook in at least the near-term toward the 1.5275 resistance pivot. If the 1H RSI is back around 70 and stalls while price is in the 1.5275-1.53 area and stalls, we should anticipate a bearish attempt. After all the prevailing trend is still bearish.