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GBP/USD returns near 1.5700; but not so fast!

FXStreet (San Francisco) - After testing the 1.5700 area and being rejected to 1.5660, the GBP/USD took forces of a good housing data in the US and jumped to test the 1.5700 area again; however, the pair got another hit.

The US building permits rose 4.8% to an annual rate of 1.08M in October; Housing starts decline 2.8% to 1.0M but previous month was largely revised to +7.8%.

Currently, GBP/USD is trading at 1.5672, up 0.26% on the day, having posted a daily high at 1.5703 and low at 1.5590. The FXStreet OB/OS Index is reflecting overbought hourly conditions, while the FXStreet Trend Index is slightly bullish.

GBP/USD sentiment

A hawkish tone from today’s BoE minutes catapulted GBP from multi-month lows in the 1.5590/80 band to fresh weekly tops at the 1.5700 handle. However, Credit Suisse looks "for GBPUSD to weaken."

The Swiss bank comments that "market expectations for the first BOE hike have already pushed out into H2 2015. Any further moderation in data momentum and inflation further undermines chances of a hike in 2015."

However, the hourly chart is showing the MA 20-hours crossing the MA 50 line to the upside at 1.5640.

With a successful break above 1.5700, the GBP/USD will find next resistances at 1.5735, high Nov.17, ahead of 1.5745, MA 200-hour. To the downside, supports are at 1.5640, 1.5600, 1.5590 and

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