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Faster, higher, stronger; GBP/USD extends advance amid dollar weakness

FXStreet (San Francisco) - The Sterling is joining the US Dollar's weakness environment after the US durable goods orders report and its price versus the Greenback is now testing October 21 high at 1.6180.

Durable goods orders extended last month 18.3% decline after posting a 1.3% fall in September; against 0.5% rise expected. Ex-transport item, durable goods declined 0.2%.

The GBP/USD jumped 70 pips from 1.6110 to break yesterday's high at 1.6145 and after triggering stops around 1.6160, the pair rallied to test October 21 highs around 1.6180. Currently, GBP/USD is trading at 1.6179, up 0.37% on the day, having posted a daily high at 1.6184 and low at 1.6088.

The hourly FXStreet OB/OS Index is showing overbought conditions, alongside the FXStreet Trend Index which is slightly bullish.

GBP/USD sentiment

Valeria Bednarik from FXStreet points out that in the short term "the hourly chart shows price extending above its 20 SMA and RSI heading strongly up above its midline, while the 4 hours chart also presents a bullish bias, with 200 EMA at 1.6190 acting as immediate resistance and the level to break to confirm more intraday gains in the pair."

If the pair breaks above 1.6180, it will find resistances at 1.6190 and 1.6200. To the downside, supports are at 1.6145, 1.6100 and 1.6090.

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