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GBP/USD dips to fresh lows, autumn forecasts eyed

FXStreet (Mumbai) - Broad based US dollar rebound emerged the main theme during the European session, which weighed on all the majors, with the cable least affected.

GBP/USD: Offered at hourly 20-SMA

The GBP/USD pair loses 0.09% and trades near fresh session lows of 1.5064, heading towards two-week lows reached at 1.5051 on Tuesday. The major failed to sustain above 1.51 handle and retreated thereafter, breaking below most MA on hourly sticks.

The renewed bout of selling interest that caught GBP/USD was mainly due to the recent strength in the US dollar against its major peers amid rising risk-on trades, with the USD index crossing 100 mark once again and stands at fresh seven-month tops.

Meanwhile, markets now await the UK’s Autumn Forecasts statement for further cues on the fiscal outlook of the British economy. The pound may come under renewed selling pressure on the statement release as the Treasury is expected to have missed its 2015-16 fiscal targets.

GBP/USD Levels to consider

The pair has an immediate resistance at 1.5111 (1h 50-SMA), above which 1.5159 (Nov 24 High) would be tested. On the flip side, support is seen at 1.5051 (Nov 24 Low) below which it could extend losses to 1.5038 (Nov 9 Low).

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