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GBP/USD: No second wave of selling

FXStreet (Mumbai) - The GBP/USD is back to 1.5260 as the FX markets did not witness the second wave of selling that is usually seen after the initial reaction following a weak UK data.

Back above Key Fib

The spot is back above 1.5248 (50% of Apr-Jun rally) after falling briefly to 1.5229 on a weaker-than-expected retail sales data. It is usually observed that a positive/negative UK data results in a quick knee jerk bullish/bearish reaction, which is followed by a second wave of buying/selling.

However, the disappointed USD bulls following stale Fed minutes could have avoided the second wave of selling in the GBP/USD pair today. The focus now shifts to the US weekly jobless claims data due later today.

GBP/USD Technical Levels

The immediate support is located at 1.5248 (50% of Apr-Jun rally), followed by 1.5229 (daily low), under which the pair could drop to 1.52 handle. On the other side, resistance is seen at 1.5306 (50-DMA) and 1.5539 (200-DMA), above which the pair could rise to 1.5409 (38.2% of Apr-Jun rally).

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