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Forex pairs in this Article » EUR/USD, GBP/USD
FXStreet (Barcelona) - Valeria Bednarik, FXStreet Chief Analyst notes that GBP/USD was unable to overcome the 1.6340 price zone, yesterday’s high, and resumed the downside on a worse than expected UK Service PMI.

Key Quotes

“The reading however was pretty positive, posting a healthy 58.3, but below the 59.1 expected and the previous 58.8.”

“Trading above the 1.6250 key breakpoint, the 4 hours chart maintains a pretty bearish tone, as indicators head lower after correcting oversold readings while 20 SMA maintains a strong bearish tone, currently a few pips above mentioned 1.6340, reinforcing the resistance level. A break below 1.6250 should see the bearish momentum accelerating, targeting then 1.6210 first, and 1.6170 area later on the day.”

“A recovery above 1.6300 may see the pair attempt to retest the 1.6340 resistance, albeit only steady gains above 1.6360 should signal a bullish continuation eyeing then 1.6410 price zone.”
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