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GBP/USD caught up other’s business; oscillates at 1.60 handle

FXStreet (Guatemala) - GBP/USD is trading at 1.5994, up 0.12% on the day, having posted a daily high at 1.6018 and low at 1.5965.

GBP/USD has taken a hit and been punished back below the 1.60 psychological handle on a broad based lift on the greenback on profit taking due to the rally in the EUR/USD. The Eur was bid due to questions over whether the ECB can indeed initiate a full on QE programme if they are only to be challenged by the national central bankers of the euro area. The greenback was shaken up on this basis and Sterling has been caught in between with a 40 pip round trip through the handle vs the US dollar. Technically, the pair is mixed, while having bounced from the early Oct low. Karen Jones, chief analyst at Commerzbank explained that below 1.5950/30 leaves the 1.5874 mid October low exposed. “We continue to target the 1.5855 November 2013 low. Beyond this we look for losses to 1.5721 the 61.8% retracement of the move from 2013”.

GBP/USD noteworthy levels

With spot trading at 1.5994, we can see next resistance ahead at 1.5996 (Hourly 20 EMA), 1.6002 (Hourly 100 SMA), 1.6018 (Daily High), 1.6024 (Daily Classic R1) and 1.6025 (Yesterday's High). Support below can be found at 1.5975 (Daily Classic PP), 1.5974 (Daily Open), 1.5974 (Weekly Low), 1.5965 (Daily Low) and 1.5927 (Yesterday's Low).

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