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GBPUSD back to below 1.15: Time for a bounce?

GBPUSD hovers below the 1.15 handle after the release of UK inflation data. The currency pair hit hard, time for a correction?

GBPUSD back to below 1.15: Time for a bounce?

GBPUSD hovers below the 1.15 handle after the release of UK inflation data. The latest inflation data showed that inflation slowed in August, inflation declined to 9.9% on the year from 10.1% in July, the Office for National Statistics reported on Wednesday.

The currency pair started this week's trading session on a positive note supported by better-than-expected UK macroeconomic data. The latest UK GDP and employment report surprised the investors with positive results. While we witnessed a strong bearish move on Tuesday after the US dollar regains strong upside momentum following the release of US August inflation data. Moving ahead, the main attraction for GBP this week is the UK retail sales data which is set to be released on Friday morning.

Technically, the overall momentum remains bearish after the previous session's strong bearish move. In the short-term, the immediate resistance is located for the index around 1.1610, a break above this level will confirm a possible move to 1.1700 and 1.1740. On the downside, if the bearish momentum continues bears will probably try to achieve the previously tested support at 1.1440/00.

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For the long-term, a fresh demand for GBP can be anticipated once the pair rises above 1.1740/50 resistance. In this case, it may offer further buying opportunities until 1.1880 and 1.1910.  

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