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GBP/USD holding on to 1.6020

FXstreet.com (Chicago) - GBP/USD accumulates 0.06% losses so far maintaining 9-month altitudes despite strong bearish pressure. The pair managed to pull itself up from 1.5986 lows and prints higher highs and lows in the afternoon of the American trading session.

Empirical evidence needed

Fed’s Bullard comments on scheduled speech earlier today sent the equity markets down in Wall Street and confirmed the poor performance phase the US economy is going through. Evidence of improvement in the job market data and inflation rates will be necessary before any policy action is taken. In the UK, public sector net borrowing was 11.425B pounds vs. expectations at 12B and past results at -1.119B. The FTSE closed 0.44% down and the Street trades in red ahead of the closing bell.

GBP/USD Technical Levels

Maintaining 9-month highs, the pair seems to retake strength in the afternoon of the American session after printing lower lows throughout Asia and Europe. At 1.6025, the upward trendline continues being respected despite the dip below the EMA20 on on-hour timeframe. On the downside, supports are aligned at 1.5976 (January 15th lows), 1.5936 (September 17th highs) ahead of 1.5878 (September 16th lows) and the upside is marked by resistances set at 1.6066 (September 19th highs), 1.6116 (December 11th 2012 highs) followed by 1.6163 (January 10th highs). According to the FXstreet.com trend index (1HR), the pair is strongly bearish.

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