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GBP/USD: bearish picture targets 1.5360 - FXStreet

FXStreet (Guatemala) - Valeria Bednarik, chief analyst at FXStreet explained that the GBP/USD pair fell down towards its weekly low during the American afternoon, as dollar's demand resumed in the light of better-than-expected US data and renewed hopes on a US rate hike next December.

Key Quotes:

"Earlier in the day, the UK Services PMI final reading resulted better-than-expected, printing 54.9 against the previous 53.3, sending the pair up to its weekly high of 1.5444, but the Pound finally succumbed, accelerating its decline after breaching the 1.5400 figure."

"The Bank of England will have its monthly economic meeting this Thursday, alongside with the release of the latest Inflation Report of the year, all of which is set to trigger some interesting moves in the pair, depending on how hawkish/dovish, the result is."

"In the meantime, the short term picture is bearish, as in the price is developing below a bearish 20 SMA in the 1 hour chart, while the technical indicators head lower near oversold levels."

"In the 4 hours chart, the price is a few pips below its 200 EMA, while the technical indicators head south below their mid-lines, supporting additional declines in the case of a downward acceleration below 1.5360, the immediate support."

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