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On Tuesday, GBP erased early declines against USD ahead of Friday's speech by Federal Reserve Chairman Ben Bernanke at Jackson Hole.
On Wednesday, GBP held gains against USD after revised second quarter US GDP data that was slightly better than initially estimated. The pair is currently quoting at 1.5839.
On the upside, immediate resistance for the currency pair is seen near 1.5850 levels and up-move beyond 1.5850 levels seems capped below 1.5900 levels.
Should the pair decisively move above 1.5900 (above recent high of 1.5912), representing the 61.8% Fibonacci Retracement Level of the pair's fall from 1.6301 to 1.5267, the gains for the currency pair seems to get extended towards 1.60 levels.
On the downside, 1.5800 is likely to act as psychological support level for the currency pair.
Should the pair decisively break below 1.5800, coinciding with 50% retracement level near 1.5780, the pair seems to depreciate further towards the 200-day SMA near 1.5750 levels.
1.5820 on the downside and 1.5850 on the upside are the levels may prove to be important points for the currency pair in deciding further intraday moves on either side.
Haresh Menghani
Market Analyst
Admiral Markets
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