This morning the British pound approaches to the key level of 200 period moving average. During the European session, the pair got a boost by the improvement in the number of requests for unemployment benefits reaching the high of 1.5685, same as last Friday, the break of which could extend the daily gains. However, in the short-term the pair appears to be overbought, already losing some points, the break of 1.5605 would pose a threat to the upward trend and downward pressure would intensify to 1.5477 with a strong resistance at that level. If the pair is away from the EMA 200, it could generate a double top with bearish implications for the medium term, with target in 1.5270 area. Therefore, we recommend selling the pair at any price below 1.57 with short-term objectives to the daily fractal 1.5336.
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