GBP/USD: The market has finally taken out the key October lows just over 1.5700 to likely open the door for some medium-term setbacks over the coming weeks. However, daily studies are now looking quite stretched and there is a risk for some choppy consolidation before any renewed weakness. The 10-Day SMA comes in just over 1.5700, and we would expect to see any rallies well capped by the latter in favor of a bearish resumption. Only a close back above the 10-Day would delay outlook.
Written by Joel Kruger, Technical Currency Strategist for DailyFX.com
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