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GBP/USD tests daily highs amid US PPI, but nothing else

FXStreet (San Francisco) - The British Pound is attempting to take off the current range against the dollar and after rising 25 pips from 1.5645, the GBP/USD is testing daily highs around 1.5670. However, the movement does not seem strong enough.

The US PPI rose 0.2% in October, against a 0.1% decline expected. On the yearly basis, the PPI rose 1.5%, above 1.3% expected.

Currently, GBP/USD is trading at 1.5662, up 0.14% on the day, having posted a daily high at 1.5675 and low at 1.5632. The FXStreet OB/OS Index is reflecting neutral hourly conditions, while the FXStreet Trend Index is strongly bearish.

GBP/USD sentiment

According to Omkar Godbole, Analyst and Editor at FXStreet, "Sharp gains in the GBP/USD pair are unlikely as the gains in the Gilt yields are likely to be capped around 2.25%." However, Godbole adds that "the GBP/USD pair is oversold and a technical correction coupled with a modest rise in Gilt yields could push the pair closer to 1.58 levels."

As for the short term, if the GBP/USd breaks above 1.5670, next resistances are at 1.5700 and 1.5730. To the downside, supports are at 1.5640, 1.5625 and 1.5600.

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