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GBP/USD taking a bout of supply through key support

FXStreet (Guatemala) - GBP/USD is trading at 1.5728, down -0.36% on the day, having posted a daily high at 1.5790 and low at 1.5725.

Key levels have been taken out to the downside and the dollar marches on vs the pound, into very negative territory. The UK economy, although robust and growing due to domestic demand, it is in a pit full of debt and that is the next risk that faces the pound. A sharp turn in external demand could be the catalyst that sends sterling much lower. When analysts begin to latch on to this as a possible threat it could be disastrous for the pound.

For the mean time, the pound is suffering on the back of the BoE’s recent quarterly inflation report when the BoE substantially lowered their outlook for inflation. The race for a rate hike is swaying in the US economy's favour, which will be attracting foreign investment into the country and weighing on sterling.

GBP/USD noteworthy levels

Current price is 1.5729, with resistance ahead at 1.5768 (Hourly 20 EMA), 1.5769 (Weekly Classic S1), 1.5776 and 1.5785. Next support to the downside can be found at 1.5726 (Daily Classic S1), 1.5725, 1.5668 (Daily Classic S2), 1.5662 (Weekly Classic S2) and 1.5559 (Daily Classic S3).

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