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Technical Analysis: GBPUSD buyers catch a breather on the way to 1.4000

Despite the latest pullback, sustained trading beyond 200-SMA and a three-week-old ascending trend line keep GBPUSD buyers hopeful. However, downward sloping RSI may recall 1.3900 on the chart before the stated support line and 38.2% Fibonacci retracement level, around 1.3880, tests short-term declines. It should, however, be noted that the bears are less likely to take entries until witnessing a clear break of 200-SMA level of 1.3830.

Meanwhile, a two-month-old horizontal area around 1.4000-4010 becomes a tough nut to crack for the GBPUSD bulls. Even if the quote rallies beyond 1.4010, 61.8% Fibonacci retracement level near 1.4020 will check the strength of further upside. In a case where GBPUSD prices offer a daily close beyond 1.4020, 1.4085 and 1.4120 should return to the charts.

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