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GBP/USD: Hovers around 1.52

FXStreet (Mumbai) - The GBP/USD pair was offered to a low of 1.5172 following the dismal UK services PMI report, before regaining some poise to trade around 1.52 handle.

Risk-on restricted losses?

The downside in the sterling appears to have been capped due to the ongoing risk-on in the European equities. The London’s FTSE index advanced on the back of gains in the Oil and Mining stocks. At the moment, the risk-on appears as the only reason behind the partial recovery in the pair.

However, the recovery from the daily low is running out steam around 1.52 handle as the weak UK services figure continues to weigh over Sterling. Ahead in the day, the spot could be influenced by the US ISM non-manufacturing/services PMI report.

GBP/USD Technical Levels

At 1.5196, the immediate support is seen at 1.5186 (hourly 50-MA), under which the spot could drop to 1.5107 (Oct 1 low). On the other side, resistance is located at 1.5244 (Oct 5 high) and 1.53 levels.

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