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GBPUSD : Still Seems Supported, 200 Day SMA a Key Support

GBPUSD : Daily Chart

Pound currently seems supported on the 4 hour chart, as the pair rose from the key support at 1.6655. The 200 day SMA also seems like acting as support for the pair. Declining below the 200 day SMA might confirm the bearish trend on the pair otherwise we might continue to see surge on the pair. The pair found support after the Bank of England Governor Mark Carney said that the interest rates might rise before the wage growth revives. The pair extended its losses last week after the central bank cut its forecast for salary growth and said that the bank would be looking at the wage growth for the timing of interest rate increase. Carney’s statement that Bank do not have to wait for the wage growth to recover for increasing the interest rates again gave a boost to the investors that the central bank might increase the interest rates earlier than the other central banks.

The immediate resistance for the pair is at 1.6753 but as there is no major economic data is coming out it might continue to rise breaking this resistance. Moving above the 100 day SMA will only revive or confirm the bullish bias on the pair until then it seems neutral to me right now.