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FxWirePro: GBP/USD climbs to 4 -week high as ceasefire deal gives bulls traction

• GBP/USD climbed to 4 week high  on Wednesday  as news of a two-week US-Iran ceasefire boosted risk sentiment.

• U.S. President Donald Trump announced the agreement late on Tuesday, just two hours before a deadline he had set for Iran to open the blockaded Strait of Hormuz or face the destruction of its "whole civilisation.

• The last-minute turnaround boosted sentiment, with traders expecting shipping to resume through the strait, which carries about one-fifth of global oil and LNG flows.


• The pair broke above the 20- and 55-SMA and the daily cloud top, trading in a 1.3285–1.3481 range.

• Immediate resistance is located at 1.3426(50%fib), any close above will push the pair towards 1.3485(SMA 20)

•  Support is seen at 1.3248(38.2%fib) and break below could take the pair towards 1.3229(Lower BB).

Recommendation: Good to  buy  around 1.3400 with stop loss of 1.3280   and target price of 1.3480
 

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