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GBP/CNH staged an impressive rally Tuesday, approaching resistance from the 76.4% recovery of the May 21 - Jul 21 sell-off/Jun 23 high at CNH9.0694/9.0724. The upswing lost steam today and the rate pulled back a tad. It last operates at CNH9.0426, 165 pips worse off on the day.
- Further losses past Jul 12 high of CNH9.0150 would turn focus to Jul 23 low of CNH8.8890. Meanwhile, bulls need to force a break above the aforementioned CNH9.0694/9.0724 area, before targeting May 21 high of CNH9.1515.