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GBP/USD deflates to 1.6620 on data

FXStreet (Edinburgh) - The pound is surrendering earlier gains now, dragging the GBP/USD back to the area of 1.6620/15.

GBP/USD keeps peaks near 1.6640

Spot is managing well to keep the upper band of the intraday range so far, despite results in the UK docket below expectations. Both August Markit manufacturing PMI and July Mortgage Approvals disappointed investors, dropping to 52.5 (from 54.8) and to 66.569K (from 67.085K), respectively. Other releases showed the M4 Money Supply contracting at a 1.0% on a yearly basis in July and the Consumer Credit expanding to £1.1 billion in the same time. “In line with expectations, GBP dipped to 1.6560/65 last Friday but the rebound did not reach the 1.6620 target. For today, expect similar price action wherein another dip towards 1.6560/65 is likely to be followed a recovery towards 1.6620”, observed Quek Ser Leang, Market Strategist at UOB Group.

GBP/USD levels to consider

The pair is now up 0.19% at 1.6628 with the next resistance at 1.6680 (high Aug.20) and then 1.6692 (200-d MA). On the flip side, a breakdown of 1.6568 (low Aug.28) would expose 1.6537 (low Aug.27) and finally 1.6460 (low Mar.24).

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