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GBP/USD: Held up at 1.5120 support for 1.5140’s in to the close


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FXStreet (Guatemala) – GBP/USD is currently trading at 1.5147 with a high of 1.5398 and a low of 1.5113.

GBP/USD is moving in to the closing bell on a minor recovery from 1.5120 support having fallen below the 100 DMA today and losing grip of the mid point of the 1.51 handle, setting a bleak technical outlook for next week leading in to the elections on the 7th May. There are no indications yet of the outcome and this means we could be heading towards a number of weeks of agreements before a government if formed, and this could all weigh on the pound.


Data wise, the big events come in the Services PMI on Wednesday 6th May and Construction PMI the day before on Tuesday 5th May. Neither of these releases are expected to be supportive of the pound, given the softness in the Eurozone.


Technically, further moves to the downside through and below the 1.51 handle would expose the psychlogical 1.50 handle and then we would be on target for the 1.4291/29 area (longer term), according to Kare Jones chief analyst at Commerzbank.