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GBP/USD around 2014 lows

FXStreet (Edinburgh) - The sterling extends its down move on Tuesday, dragging GBP/USD to the area of 2014 lows near 1.5900 the figure.

GBP/USD hurt by USD, CPI

The ongoing USD strength is taking a toll on the sterling today. The selling pressure has also been increasing since the release of the inflation figures in the UK economy, showing that consumer prices gained 1.2% on a yearly basis in September, missing expectations and down from the previous 1.5% advance. According to Dmytro Bondar, Technical Analyst at RBS, “The pair pressured 100-week and 200-week moving averages and put pressure on the 1.5919 support, being the 23.6% retracement from the Jul – Sep 2013 impulse wave. If the level is broken, Cable will only see the next big support at 1.5708”.

GBP/USD key levels

As of writing the pair is retreating 1.05% at 1.5915 with the next support at 1.5095 (low Oct.14) followed by 1.5879 (low Nov.13 2013) and then 1.5854 (low Nov.12 2013). On the upside, a breakout of 1.6009 (low Oct.10) would open the door to 1.6084 (10-d MA) and finally 1.6126 (high Oct.13).

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