FXstreet.com (Barcelona) - After bottoming at 1.3506, GBP/USD trading is situated between the 50- and 200-day SMA, currently projected at 1.4259 and 1.6470.

The Bollinger Bands on the 4-hour chart appear to be tightening, indicating a violent breach may occur in the future, said Greg Holden, analyst at ForexYard. The direction may be distinguished by the signals on the hourly chart which displays a bearish cross on the Slow Stochastic, indicating that a downward correction might take place, he added. The hourly chart also shows the pair trading at the upper border of its Bollinger Bands, which indicates that the pair may fall to its lower border.

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