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GBP/USD capped by 1.6020

FXStreet (Córdoba) - GBP/USD rose through the 1.60 mark and printed fresh daily highs, filling the weekly opening gap in the process, following stronger than expected UK manufacturing PMI.

GBP/USD managed to bounce off a daily low of 1.5925 and rose nearly 100 pips throughout the day toward a high of 1.6020 before finding resistance and settling in a slim range over the last hours. At time of writing, the pair is trading at the 1.5998, virtually unchanged on the day.

GBP/USD technical outlook

“The short-term momentum is negative as long as prices remain below the hourly resistance at 1.6038 (30/10/2014 high). Another hourly resistance stands at 1.6088 (28/10/2014 low)”, said Peter A Rosenstreich, analyst at Swissquote Bank SA.

“In the longer term, given the significant deterioration of the technical structure since July, the strong resistance area between 1.6525 (19/09/2014 high) and 1.6644 (01/09/2014 high) is expected to cap any upside in the coming months. Monitor the current consolidation phase near the strong support at 1.5855 (12/11/2013 low)”, the analyst added.

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