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GBP/USD testing 1.5500

FXstreet.com (Edinburgh) -The sterling is trading on the back foot on Tuesday, following the rest of the risk-associated peers and dragging the GBP/USD to a challenge of the key support at the 1.5500 handle.

GBP/USD extends the correction lower

The pair is prolonging its decline after last week’s peaks beyond 1.5700 the figure, as the geopolitical tensions around Syria continue to spook investors. The Swiss bank UBS holds a neutral stance on the pair, with Strategists G.Yu and G.Berry arguing, “Having advanced sharply, the pair is correcting and unwinding the sharp advance. There is scope for more weakness to test the strong support at 1.5373. Resistance is at 1.5718”.

GBP/USD relevant levels

The pair is now losing 0.36% at 1.5519 facing the next support at 1.5476 (MA21d) ahead of .15375 (low Aug.9) and then 1.5356 (MA100d). On the upside, a breakout of 1.5592 (high Aug.27) would expose 1.5601 (MA10d) and then 1.5612 (high Aug.26).

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