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GBP/USD has potential if the dollar will allow it

Since peaking at 1.2827 on December 28 last year the GBP/USD has been trying to reclaim the topside, but so far a rise above that interim high has proved elusive. The pound peaked at 1.2771 on January 5, then at 1.2767 on January 8. It topped out yesterday at 1.2744, but today it has risen to a high so far at 1.2774. Of course this is all about the dollar at the moment and not the Pound itself. That said the 21 day moving average is rising and in place this morning at 1.2710. So, despite struggling to really accelerate to the upside, the fundamentals do support more gains. A break above 1.2827 from here could open a path towards 1.2900, where trend line resistance currently comes into play. Of course it has to get above 1.2827 first, but it looks primed for that right now, IF the US CPI data sends the dollar lower this afternoon. All to be revealed at 1.30pm GMT then. The GBP/USD is currently trading at 1.2765 

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