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GBP/USD eyes a close on 1.58 handle

FXStreet (Guatemala) - GBP/USD is trading at 1.5788, up 0.50% on the day, having posted a daily high at 1.5808 and low at 1.5679.

GBP/USD is continuing to make a comeback through the November 7th low (1.5792) and eyes the 1.58 handle again looking for a close there despite the indications of further slowing with investment down for the first time in over a year. However, UK GDP did come in line earlier in London. The move higher is more of a result in the US data performances that have not been impressive at the end of the month apart from Durable goods that were highly impressive.

We now move into thinner market season and today markets are squaring up ahead of the Thanksgiving holiday in the US. The danger here is that there is still plenty of uncertainty and with thinner illiquid markets, we might be in for some choppy activity as we come towards the closing weeks of the year.

If we can find a close on 1.5800, then Karen Jones, chief analyst at Commerzbank explained that potentially stronger rallies are expected to find good resistance offered by the 1.5855 November 2013 low and then by the 1.5899 four month downtrend line. “Key resistance remains at 1.6184, the October 21 high. While capped here, an overall negative bias remains intact”.

United States EIA Natural Gas Storage change below forecasts (-145B) in November 21: Actual (-162B)

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