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Cable Eroding Services PMI Induced Gains, Declines 0.62%

GBP
  • While the greenback extends its stubborn grind higher, noting some GBPUSD weakness in recent trade, eating into yesterday’s post UK flash services PMI gains.
  • The pre-data level to watch there is 1.2016 with nothing of note below that level until 1.1915, the Feb 17 low.
  • The broader view suggests recent weakness is reinforcing a S/T bearish theme and signals scope for a continuation. A break of 1.1842 would highlight a potential trend reversal and a double top.
  • Firm resistance is 1.2265, Feb 3 high.

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