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GBP/USD bears target 1.5086

FXStreet (Guatemala) - GBP/USD is currently trading at 1.5161 with a high of 1.5262 and a low of 1.5134.

GBP/USD has seen some strong downside with the greenback rallying. The major has dropped the 1.55 handle, down through the 200 SMA at 1.5406 and has made a fresh low of 1.5134. The data has been kind to the greenback from the US today with GDP strong and beating expectations at 3.9% vs 3.7% along with core PCE at 1.9% vs 1.8% expected.

GBP/USD and UK data

Next week is key for the UK with GDP and the ONS Bluebook revisions to GDP. Analysts at TD Securities explained to ignore the headlines. "The Q2 GDP numbers on Wednesday will fully incorporate major historical revisions to the UK GDP which are highly academic, but may generate a lot of chatter about how the UK economy is faring better than first reported.

We already know that GDP growth from 2011 to 2013 will be revised up significantly (by up to 0.5% per year), which will undoubtedly generate some hawkish headlines. However, barring any major changes to the 2015 numbers, the MPC will see the revisions as purely structural, and won't even entertain the idea of changing their policy stance."

GBP/USD levels

Technically, the major has fallen below the June and previous September lows 1.5171/63. Karen Jones, chief analyst explained that a move to 1.5086, the 61.8% retracement could come as a result and then 1.4895, the 78.6% retracement. "Immediate resistance can be seen between the July low and the 200 day moving average at 1.5330/37. Further resistance comes in around the 1.5424 early August low. Above 1.5424, potential rallies should find initial resistance at 1.5517/1.5540 ahead of Fibonacci resistance at 1.5678."

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