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Pound pops higher
GBP/USD has pulled back the losses it suffered yesterday when UK inflation fell to its lowest level on record.
The pound is performing well when you consider that the UK is edging closer to deflation, and as I noted, Mark Carney is open to interest rates cuts.
The short-term upward trend that the pound has been experiencing appears to be running out of steam, and we could be on the verge of a reversal. The big picture clearly shows that GBP/USD is in a downward trend and is about to resume its usual move lower.
The level of resistance is $1.49; if this is held the 200-hour moving average of $1.4830 will be the first target, and beyond that traders will look to $1.48. A move above $1.49 will put the $1.50 mark on the radar.