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GBP/USD retreats from highs, gets comfortable below 1.6000

FXStreet (Córdoba) - GBP/USD has given up some ground at the beginning of the New York session, retreating from the 1.6020 resistance area where it peaked earlier on the day.

The US dollar gained momentum and dragged GBP/USD to session lows in the 1.5960 area after upbeat ISM manufacturing PMI data. The PMI rose to 59.0 in October from 56.6 the previous month and beating market consensus of 56.2. On the other hand, September construction spending fell 0.4% versus a rise of 0.7% expected.
GBP/USD retreated further from highs but it has found support at 1.5960 so far. At time of writing, the pair is trading at 1.5970, down 0.16% on the day.

GBP/USD short-term technical outlook

Valeria Bednarik, chief analyst at FXStreet notes the pair holds a mild positive tone. “Critical resistance stands at 1.6030 price zone, the 50% retracement of the pair’s latest bullish run. Sellers had surged twice on approaches to the level, so it will take some steady advance above it to confirm further intraday advances towards 1.6060 price zone”, said the anayst.

Bednarik locates immediate resistance levels at 1.6035, 1.6060 and 1.6100, while supports are seen at 1.5950, 1.5910 and 1.5875.

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