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GBP/USD drops sharply, USD on a tear

FXStreet (Bali) - GBP/USD is trading very heavy in Asia, last at 1.5160 day lows, with the appreciation of the USD across the board to blame, as the conviction of the Fed raising rates in December increases.

GBP/USD technicals: in-house view

Valeria Bednarik, Chief Analyst at FXStreet, notes: "The technical picture suggests a major correction has been completed, as the price retraced from the 61.8% retracement of the November decline."

"In the daily chart, the price is well below a bearish 20 SMA, whilst the technical indicators head south below their mid-lines, maintaining the risk towards the downside."

"In the 4 hours chart, the Momentum indicator is flat right below its 100 level, while the RSI indicator holds around 38, whilst the price stands well below its moving averages, also indicating additional declines particularly on a break below 1.5160."

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