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GBP/USD Daily Chart

GBP/USD (daily chart) has dropped below 1.5900 support down to both the 200-day moving average and an important uptrend support line extending back to the June 1.5265 low. This fall has established a new 2-month low for the pair and has placed it at a critical support confluence. If the bearish trend that has been in place since the September 1.6300 area high carries enough momentum to breakdown below this support confluence, the next major support objective to the downside potentially resides around the key 1.5750 price region. That 1.5750 level has served both as critical support and resistance for the past 6 months. In the event of a bullish bounce off the current support confluence, price could move once again towards a re-test of the 1.6000 psychological level.

James Chen, CMT
Chief Technical Strategist
FX Solutions

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