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GBP/USD downside pressures contained

FXStreet (Guatemala) - GBP/USD is trading at 1.5976, down -0.11% on the day, having posted a daily high at 1.6025 and low at 1.5927.

GBP/USD is contained here and sideways while in bearish territory given the dovish outlook on the basis of a disinflationary environment. Analysts at Rabobank have said, “For now we maintain our call that the BoE will not hike rates before May 2015 at the earliest, but another round of weak UK wage and CPI data could tip the balance towards a forecast of a later start to the rate hiking cycle”. Pressures to the downside have been mounting, albeit delayed, but here leaves the 1.5874 mid October low exposed and the atmosphere is mounting towards an initial target of the November 2013 low at 1.5855. Karen Jones, chief analyst at Commerzbank explained that beyond that point they look for losses to 1.5721 the 61.8% retracement of the move from 2013.

GBP/USD noteworthy levels

With spot trading at 1.5977, we can see next resistance ahead at 1.5983 (Daily Classic PP), 1.5984 (Hourly 20 EMA), 1.5995 (Weekly Low),1.6014 (Asia's High) and 1.6025 (Daily Classic R1).Support below can be found at 1.5968 (Daily Open), 1.5954 (Daily Classic S1), 1.5942 (Asia Low), 1.5927 (Daily Low) and 1.5912 (Daily Classic S2).

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