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GBP/USD recovers to 1.51, higher lows on charts?

FXStreet (Mumbai) - The GBP/USD saw an erratic recovery to 1.5103 levels, before falling back to the hourly 50-MA located at 1.5096 levels.

Higher lows on intraday chart

The hourly chart now shows higher lows formation – 1.5053 on 24th Nov, 1.5056 on 25th Nov, and 1.5066 on 26th Nov. The pair surprisingly dipped below 1.5087 (61.8% of Apr-Jun rally) in early Europe, but the losses were capped around 1.5066.

The pair may not see much action in the US session on account of a trading holiday. The investors now look towards the UK Q3 GDP number due tomorrow.

GBP/USD Technical Levels

The immediate resistance is seen at 1.5120 (23.6% of 1.5336-1.5053), above which the pair could target 1.5163 (Sep 4 low). On the other hand, a failure to sustain above the hourly 50-MA at 1.5096 would expose 1.5087 (61.8% of Apr-Jun rally) and 1.5066 (daily low).

Markets speculate on ECB’s probable easing tools ahead of the Dec 2 meeting

It is eight days to the ECB meeting on 2nd December and speculation with respect to the ECB’s QE programme abound. ECB is believed to be discussing 20 easing options for next Thursday. ECB president Draghi has hinted at further easing to raise inflation in the bloc. Talks on various easing tools are doing the rounds in the market. It must be remembered however that all tools are untested. The ECB is probably looking at surprising the markets; however, like an anonymous ECB source said “you cannot surprise indefinitely”.
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