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GBP/USD erases daily gains

FXStreet (Córdoba) - GBP/USD benefited from solid UK Aug service PMI (60.60 versus exp 58.50) and rose to near 1.6600 during the European session, but the pair found resistance ahead of the psychological level and pulled back.

Reports of a ceasefire agreement in Ukraine also helped GBP/USD, but gains were short-lived. After peaking at 1.6496, the British pound turned south and retraced its intraday advance to trade effectively unchanged at 1.6470. A phase of consolidation could be expected ahead of the BoE meeting tomorrow.

GBP/USD technical levels

In terms of technical levels, GBP/USD could find next resistances at 1.6496/1.6500 (intraday high/psychological level) and 1.6520 (38.2% Fibo of this week fall 1.6643-1.6444). On the other hand, supports are seen at 1.6444 (Sep 3 low), 1.6425 (Feb 12 low) and 1.6400 (psychological level).

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