Having clocked a low of 1.3009 in Asia, GBP/USD is now trading at 1.3042 and could rise further toward the descending (bearish) 50-hour moving average (MA), currently located at 1.3070, as the relative strength index has diverged in favor of the bulls, as per the hourly chart.
Hourly chart
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As seen above, the RSI has charted higher lows as opposed to a lower low on price – a sign of seller exhaustion. As a result, the 50-hour MA, which served as a strong resistance last week could be put to test again.
Trend: Rise to 50-hour MA likely
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