GBP/USD tries to gain more ground at the start of the week.

British Pound Gains Ground Some Ground Against U.S. Dollar.GBP/USD continues its attempts to settle above the resistance at 1.3400 while U.S. dollar is gaining some ground against a broad basket of currencies.The U.S. Dollar Index failed to settle below the support level at 96 and rebounded closer to the resistance at 96.25. In case the U.S. Dollar Index gets back above this level, it will move towards the next resistance at 96.50 which will be bearish for GBP/USD

Technical Analysis

GBP/USD remains stuck near the 1.3400 level. RSI is in the moderate territory, and there is plenty of room to gain additional upside momentum in case the right catalysts emerge.If GBP/USD settles above 1.3400, it will get to another test of the resistance level at 1.3420. A move above the resistance at 1.3420 will open the way to the test of the next resistance which is located at the recent highs at 1.3440. In case GBP/USD manages to settle above 1.3440, it will head towards the next resistance level at 1.3460.

On the support side, the nearest support level for GBP/USD is located at the 50 EMA at 1.3385. In case GBP/USD manages to settle back below the support at the 50 EMA, it will gain additional downside momentum and head towards the support at 1.3370. A move below 1.3370 will push GBP/USD towards the next support level which is located at 1.3350.

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