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GBP/USD: hovers around daily lows below 50% retracement

FXStreet (Mumbai) - The GBP/USD pair trades below 1.5248 (50% of Apr-Jun rally), as bearish pressure remains intact on account of dovish comments from BOE members.

BOE Rate hikes to be relatively slow

Sterling has a very little room for recovery as BOE members were on the wires today stating that rate hikes, whenever they happen, are likely to be relatively slow. In fact McCafferty, for the first time stated that the bank may consider using interest rates (cut) instead of QE in the future.

Somewhat similar comments were made by BOE’s Vlieghe. Earlier today, the UK CPI missed estimates to print below zero levels, triggering a sell-off in the GBP.

GBP/USD Technical Levels

At 1.5243, the immediate resistance is seen at 1.5248 (50% of Apr-Jun rally), above which the spot could rise to 1.53 (23.6% of 1.5930-1.5107), followed by a major hurdle at 1.5318 (200-DMA). On the other hand, support is seen at 1.52 and 1.5163 (Sep 4 low).

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