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GBP/USD into questionable territory

FXStreet (Barcelona) - GBP/USD is trading at 1.5959, down -1.14% on the day, having posted a daily high at 1.6161 and low at 1.5952.

GBP/USD is now testing the mid point of the handle and November 2014 territory and this area may be regarded as oversold technically and fundamentally. However, from here, there is room towards 1.5920 perhaps and that could act as critical support ahead of the 1.5890/70 level when looking over the last two years. The greenback has been fuelled of course with the impressive Non farm payrolls data on a knee jerk, but if one were to look closer, wages have slipped back and that may prevent further advances in the greenback as we move in towards the close for the week.

GBP/USD weighed upon Central Bank outlook

Meanwhile, the market is anticipating that the next policy moves from both the Fed and the BoE will be rate hikes, as Jane Foley, Senior Currency Strategist at Rabobank noted and explained, “Surveys are suggesting that a BoE hike is expected in Q1 2015, some months ahead of a Fed hike around the middle of the year. On both counts we are more dovish than the market consensus”.

BP/USD noteworthy levels

Current price is 1.5960, with resistance ahead at 1.6004 (Weekly Classic S3), 1.6032 (Daily Classic S2), 1.6088 (Daily Classic S1), 1.6096 (Hourly 20 EMA) and 1.6105. Next support to the downside can be found at 1.5950 (Daily Classic S3), 1.5920, 1.5907 and longer-term lows are 1.4868 (3 Year Low) and 1.4334 (5 Year Low).

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