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GBP/USD getting closer to 1.60 resistance

FXStreet (Moscow) - GBP/USD rebounded from yearly low at 1.5952 posted in Asia reaching 1.5989 high in early Europe.

Cable is on sale

Although the pair is trying to recover above 1.60, the move up is still fragile. The pound keeps moving lower on every positive piece of news out of the USA. Moreover, stronger than expected data out of the UK is mostly ignored by the market, meaning the investors started to put their bets on the Fed to hike first. The picture will stay the same, until economic data starts to prove the BOE has the chances to be the first, as well. UK Industrial production data scheduled for release tomorrow may be of interest, especially if it comes out better than expected. Given the oversold nature of the pound, a sharp spike higher on the back of the report is not ruled out.

What are today’s key GBP/USD levels?

Today's central pivot point can be found at 1.6029, with support below at 1.5897, 1.5820 and 1.5688 with resistance above at 1.6106, 1.6238 and 1.6315. Hourly Moving Averages are largely bearish, with the 200SMA at 1.6234, and the daily 20EMA bearish at 1.6272. Hourly RSI is bearish at 30.

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