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GBP/USD finds support around 1.4900 and trims losses

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Dec 2, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Córdoba) - The sharp decline of the GBP/USD found support around 1.4900 form where it bounce to the upside after the US dollar lost momentum across the board.

    The pair started to slide during the European session and accelerated on American hours. It bottomed at 1.4893, the lowest level since April 13. Then rebounded and it was trading at 1.4945/50, down 0.85% for the day. Cable is about to post the first close below 1.5000 in seven months.

    From the lows it has risen more than 50 pips but still remains more than a hundred pips below yesterday’s closing price. The intense decline of GBP/USD weakened the pound across the board.

    GBP/USD: Key levels

    The trend continues to favor the US dollar and it will likely do so as long as price remains below 1.5250/70, where a downtrend line originated at August highs is located. A break higher could boost the pound.

    On the opposite direction, today GBP/USD is about to end below 1.5000 which could be a signal of a bearish continuation. Support levels from here might lie at 1.4900 (psychological level) and 1.4845/50 (Apr 21 low).
    For more information, read our latest forex news.
     

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