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GBP/USD bears bitten by spike
Sterling bears will be licking their wounds today after yesterday’s spike. We have seen the price drift back from $1.33, which marked the limit of cable’s advance. A break through here would head towards $1.3370, the high from the beginning of August.
Any strength in the dollar following non-farm payrolls today could see some of the gains unwound, with initial support around the 50-hour simple moving average (SMA) at $1.3197, and then down to the lows of the week around $1.3050.