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GBP/USD falls to fresh 3-week lows

FXStreet (Córdoba) - GBP/USD extended losses and hit a fresh 3-week low during the European session despite strong UK construction data was released.

The UK construction PMI hit a new cycle high in September, at 64.2 beating expectations of 63.5. However, Cable failed to hold above the 1.6200 level and came under renewed pressure and dropped to a fresh low of 1.6155 in recent dealings.

Meanwhile, ECB's monetary policy decision is the main event of the day while tomorrow the US will release the employment report. These events might trigger volatility during the last days of the week.

GBP/USD technical levels

If GBP/USD breaks decisively below 1.6150, next bearish target comes at 1.6100/1.6097 (psychological level/Sept 8 low) en-route to 1.6050 (10-month low Sept 10). On the other hand,resistances in case of bounces are seen at 1.6248 (intraday high), 1.6266 (20-day SMA) and 1.6286 (Sept 30 high).

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