GBP/USD rises towards downtrend resistance but looks weak

US data came out worse than expected, and currencies are partying. The pound received some good news this week but Brexit still looms. Nevertheless, the fall of the greenback is clearly seen in GBP/USD.

Cable is topping the very round 1.30 level, reaching a high of 1.3011 so far. On the way up, Sterling crossed resistance at 1.2980 and is heading towards downtrend resistance.

The pair’s 2017 high is 1.3050 and since then, it registered a lower high at 1.3030. The line currently stands at 1.3025. If this attempt to break higher fails, it will confirm the line and serve as a third lower high, making it a big bearish sign for the pound.

And fundamentally, if the pound cannot take advantage of the great weakness of the greenback while other currencies are partying, it is of worry to GBP/USD bulls.

So far, the pair follows the pack and rises, but watch out for this level.

Get the 5 most predictable currency pairs[1]

from Forex Crunch http://feedproxy.google.com/~r/ForexCrunch/~3/Ti4GDIXWyeA/

from Online Forex Trading Resource
View thesource article here

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