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GBP/USD: and the slide continues, flirts with 1.542 handle

FXStreet (Mumbai) - The bears maintain their strong grip on the GBP/USD pair, pushing it to a low of 1.52 handle in the US session on the back of low UK inflation and dovish comments from BOE officials.

GBP/USD sees 180-pip loss

The pair has turned lower from the high of 1.5388 seen in early Europe. First 120-140 pips were shed after the UK inflation figures for September were reported negative. The losses were extended further to a low of 1.52 after BOE’s McCafferty; the only member vouching for a rate hike, said the bank could cut rates or even initiate QE if required.

Meanwhile, Fed’s Bullard did not offer any surprises in his speech. At the moment, the pair is trading around 1.5215 levels.

GBP/USD Technical Levels

The immediate support is located at 1.5163 (Sep 4 low), under which the pair could test 1.5107 (Sep 30 low), followed by a major support at 1.5087 (61.8% of Apr-Jun rally). On the other side, resistance is seen at 1.5248 (50% of Apr-Jun rally) and 1.53 levels.

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