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BUZZ-COMMENT-At these levels, consider selling the pound

GBP/USD has reached significant resistance, favouring those who sell.

July 28 (Reuters) - GBP/USD has reached significant resistance, favouring those who sell.

Traders must be cautious about this GBP/USD rise. The trade-weighted value of sterling is not rising, making a break of major resistance less likely.

It's also worth noting, that much recent movement has been derived from risk aversion. The pound is not a safe asset, so its rise goes against the current trend .

After the euphoria of the Tories election victory last year, GBP/USD sank. It spend most of this year much lower. It's been below the peak of the weekly Ichimoku cloud, currently 1.2968, since March, and also the 200-week monthly average, which is 1.2907.

A 76.4% retracement of the drop from December's peak is 1.3020.

The 55-month moving average, which has helped to define highs since 2014, is 1.3079.

It's unlikely many traders remain short pounds. The squeeze is over, and now month-end selling is likely .

For more click on FXBUZ

GBP/USDhttps://tmsnrt.rs/306DT1m

GBP/USDhttps://tmsnrt.rs/3hFPeLB

GBP/USD weeklyhttps://tmsnrt.rs/3f5NEAU

GBP TWIhttps://tmsnrt.rs/2P88jJX

(Jeremy Boulton is a Reuters market analyst. The views expressed are his own)

((jeremy.boulton@thomsonreuters.com))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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