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GBP/USD bounces off 1.6000

FXStreet (Edinburgh) - The selling interest keeps hovering over the sterling on Thursday, with GBP/USD trading in the 1.6000/10 band so far.

GBP/USD depressed by UK docket

Spot dropped more than 50 pips in the wake of poor UK retail sales during September, surprising markets to the downside. The decline, however, seems to have found decent support around the psychological handle at 1.6000, currently attempt a rebound to 1.6010/15. A generalized repetitive tone from yesterday’s BoE minutes coupled with today’s softer docket in the Brotish economy leave spot on shaky ground ahead of tomorrow’s release of the UK GDP for the third quarter (0.7% QoQ exp.). FX Strategist Emmanuel Ng at OCBC Bank noted “our preference would be to fade any near term rallies for the pair with 1.6000 seen as an initial floor”.

GBP/USD significant levels

At the moment the pair is retreating 0.21% at 1.6016 with the immediate support at 1,5994 (61.8% of 1.5875-1.6186) ahead of 1.5940 (low Oct.16) and then 1.5875 (low Oct.15). On the other hand, a breakout of 1.6064 (10-d MA) would aim for 1.6115 (21-d MA) and finally 1.6130 (high Oct.22).

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