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FxWirePro: GBP/USD drops towards 1.3100 level as bearish pressure increases

• GBP/USD declined sharply on Thursday as stronger US dollar and dovish comments by BOE governor Bailey weighed on British currency. •Bailey said in an interview that the central bank could become "a bit more activist" o…

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FxWirePro: GBP/USD drops towards 1.3100 level as bearish pressure increases
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• GBP/USD declined  sharply  on Thursday  as stronger  US dollar and dovish comments by BOE governor  Bailey weighed on British currency.

•Bailey said in an interview that the central bank could become "a bit more activist" on rate cuts if there was more good news on inflation.

•Bailey has sounded more dovish in recent weeks, saying last month he was  optimistic  that inflationary pressures would ease sufficiently for the central bank to cut rates further.

•At GMT 15:28, the pair was trading down 1.16 percent  at 1.3122, lowest since  12th September.

•   Immediate resistance is located at 1.3172( 38.2%fib), any close above will push the pair towards 1.3269(Daily high)

•  Strong support is seen at 1.3068(50%  fib) and break below could take the pair towards 1.2971 (61.8%  fib).

  Recommendation: Good to sell around 1.3120 with stop loss of 1.3200 and target price of 1.3020

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