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GBP/USD: massive bullish charge on key technical signal

FXStreet (Guatemala) - GBP/USD has found bulls demanding a score onto the 1.52 handle, protecting key psychological lower levels.

The bid was key to ensure the bears do not get too cocky, especially in light of the recent Nonfarm Payrolls data that was quite frankly a massive surprise and could have huge implications on not just the value of the greenback, but Global markets and FX positioning across the board.

Infact, the IMF have announced major cuts to Global growth forecasts today, as follows:

- Cuts 2015 global growth to 3.1% vs 3.3% prior

- 2016 3.6% vs 3.8% prior

- US 2015 GDP 2.6% vs 2.7% prior

- 2016 2.8% vs 3.0% prior

And...

- China growth slowdown fall out bigger than expected

- Fed should await firmer signs of inflation rising before liftoff


So what is going on with the pound?

The short version is the UK is going through a soft patch, much of which is already priced in and rising wage growth, low energy prices and domestic demand should alleviate negative pressures from slowing growth overseas going forward and keep the BoE from being too dovish.

Read latest bearish data from the UK, as reported by Investec Bank

GBP/USD bullish - (High so far is 1.5235 and spot 1.5220 at time of writing)

Technically, the price has rallied up through the 1hr 200 SMA with the 50 SMA crossing upwards at the pivot on the same time frame and hence cable pulled in demand on a 50 pip score, targetting 1.5240, yesterday's highs. RSI (14) approaches 70, a sign that the major is heading towards overbought having hit R2. next stop R3 at 1.5272.

United States 4-Week Bill Auction remains unchanged at 0%

United States 4-Week Bill Auction remains unchanged at 0%
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GBP/JPY is rising today boosted by the rally of the pound against the US dollar. The pair is testing yesterday’s highs located around 183.20 as it attempts to move off a key support zone.
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