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Forex: GBP/USD collapses below support to 1.5349/50

The GBP/USD has plummeted over 80 pips amidst the BOE minutes and following the publication of the economic data in the UK Wednesday. Following the abrupt pullback, the pair crashed through calculated support at 1.5400 and is now trading at 1.5349/50, establishing new session lows at the time of writing.

According to Slobodan Drvenica, an analyst at Windsor Brokers Ltd., after breaking below 1.5400, the GBP/USD is slated to face calculated support at 1.5320. On the ascension, a break above 1.5460 will trigger resistive means at the 1.5500 handle, up to 1.5550.

In the United Kingdom, the Claimant Count Change came in at -12.5K in January, against expectations of -5.0K and down from -12.1K previously. In addition, the Claimant Count Rate (January) reported +4.7%, relative to +4.7% previously. Finally, the ILO Unemployment Rate (3M) yielded a figure of 7.8% in December, against estimates calling for 7.7%.

“The near-term bears remain fully in play, as the GBP/USD continues to post fresh lows, with the latest seen at 1.5413, just ahead of our next target at 1.5400/1.5390 zone. The near-term focus remains at key supports at 1.5267/33 (medium-term range lows), with upside being protected at 1.5500/50. Only a break here would signal a pause in the current descent for some corrective action.” Drvenica adds.

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