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GBP/USD hesitated under the downtrend resistance line but is now on the move.

Pound/dollar is now trading at the highest level since September 2016, breaking above resistance at the previous 2017 high of 1.3050. The high so far is 1.3083.

The next cap is at 1.3130. The next lines are 1.33 and 1.35, but these seem far. Support is at 1.2980.

We are firmly in levels last seen before the big “flash crash” in October, or if you wish, the initial post-Brexit range of 1.28 to 1.35, moving towards the middle of that range.

Here is how it looks on the daily chart.

The driver for the weakness of the dollar stems from poor retail sales and inflation data. All the figures released at 12:30 GMT missed expectations. The news published at 14:00 also came short of predictions: consumer sentiment dropped more than expected.

Other currencies are also moving higher against the beaten US dollar. The next Fed rate hike is at risk.