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GBP/USD creeping to 1.6050 support; bears run the show

FXStreet (Moscow) - GBP/USD tried to get above 1.6100 resistance, but the initial upside was quickly reversed and the pair dropped to current level at 1.6058, marginally above Asian low at 1.6055

Enough for recovery

GBP/USD partially recovered Friday’s losses and tested waters above 1.6100 on Tuesday. The pair reached weekly high at 1.6128 and retraced towards 1.6094 by the end of the day. While UK economic calendar contains only second tier reports, markets are a bit nervous ahead of FOMC minutes published later today. USD is gaining ground against most majors including GBP. BRC Shop Price Index published earlier today did not help to improve sentiments. The figure dropped to -1.8% in September against -1.6% in August, which signals about weakening inflation pressure. From the technical point of view, GBP/USD is getting closer to 1.6050 support. Once it is broken, the downside may be extended towards1.6038. The resistance is seen at 1.6100 and at 1.6128 (Tuesday’s high)

What are today’s key GBP/USD levels?

Today's central pivot point can be found at 1.6084, with support below at 1.6038, followed by 1.5980 and 1.5834 with resistance above at 1.6142, followed by 1.6188 and 1.6246. Hourly Moving Averages are bearish, with the 200SMA bearish at 1.6165, and the daily 20EMA bearish at 1.6239. Hourly RSI is bearish at 49.

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