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GBP/USD rejected at 1.5200, drops to hourly 20-MA

FXStreet (Mumbai) - The GBP/USD recovery lost steam just ahead of 1.52 barrier and the major retraced to the hourly 20-MA support in the European session amid persisting risk-off sentiment, which curbs the demand for riskier assets such as the GBP.

GBP/USD drops below hourly 50-MA

The GBP/USD pair trades modestly flat at 1.5168, fading a spike to 1.5205 session highs. The cable erased gains and slipped back into losses as risk-aversion regained momentum on renewed weakness in the European stocks, thereby dragging riskier assets lower across the board.

Moreover, a fresh bout of buying interest around the US dollar also pushed the GBP/USD pair lower. The USD index erased losses and turned positive at 96.16.
Meanwhile, traders now await US economic data and BOE Carney’s speech due later in the North American session for fresh cues on the cable.

GBP/USD Levels to consider

The pair has an immediate resistance at 1.5205 (Today’s High) above which gains could be extended to 1.5243 (Sept 28 High) levels. On the flip side, support is seen at 1.5133 (Sept 25 Low) below which it could extend losses to 1.5100 levels.

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