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Post-CPI Weakness Could Trigger Reassessment of S/T Outlook

GBP
Today's pull lower in GBP may prompt a reassessment of the previously bullish short-term trend condition in the currency - a number of key technical levels have been broken in GBP - most notably EUR/GBP:
  • GBPUSD is marking four consecutive sessions of lower lows and markets are on watch for a potential reversal pattern. This would gather strength on a break below 1.2866 - the 50% retracement of the late June upleg. So far, spot is finding support at 1.2932, the 38.2% Fib.
  • EUR/GBP has accelerated higher with the break of the 50-dma and bull trigger, bringing the next key upside levels at the 100-dma of 0.8707 and congestion resistance at 0.8719 into play.

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