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GBP/USD trading at fresh 4 month lows following weak CPI - FXStreet

FXStreet (Łódź) - FXStreet Chief Analyst Valeria Bednarik stresses that the GBP/USD retraced its Monday gains following the lower than expected UK July CPI numbers, as the pair fell to fresh 4 month lows.

Key quotes

"On Wednesday, the UK will publish the Minutes of its latest meeting, and if that fails to support the local currency, the longer term bearish trend will come to place."

"Technically, the 4 hours chart shows price hovering around 1.6650 former low, after posting an intraday one of 1.6633. Momentum heads strongly south, entering negative territory, while price broke below its 20 SMA, all of which supports further daily falls."

"A downward acceleration through 1.6630 should see the pair extending its decline to 1.6590 in the short term, while once below this last next support comes at 1.6550 price zone."

"To the upside, the immediate resistance level stands at 1.6685, followed by 1.6730 price zone."

"Finally above this last, a daily descendant trend line coming from this year high stands around 1.6770 and it will take a recovery above this last to revert the bearish bias, quite unlikely at the time being."

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