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GBP/USD erases gains, back below 1.5600

FXStreet (Córdoba) - GBP/USD rose earlier to test daily highs but it failed to break higher and retreated, erasing gains. Greenback recovered strength across the board and trimmed losses.

GBP/USD back below 1.5600

The pair peaked at 1.5656 during the US session but is trading almost a hundred pips below daily highs
at 1.5575/80, around the same level it closed yesterday. The intraday technical outlook turned bearish as price consolidate below the hourly 20-SMA.

If it continues to slide the next support could be located at 1.5545/50 where daily lows and yesterday’s European session highs area located, followed by 1.5525. On the opposite direction, cable could gain bullish momentum if it manages to recover 1.56.

GBP/USD up for the week


Despite moving away from the highest level in three weeks, GBP/USD is still trading 130 pips above the price it had seven days ago. It is headed toward the second weekly gain in a row and a close on top of 1.5500, that could provide now support for the pound.

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