GBP/USD takes out stops above 1.5260

By FXStreet FXStreet (Bali) – The US Dollar continues to extend the sell-off in Asia, with no fundamental news behind, resulting in GBPUSD GBP/USD to take stop loss buy orders above the 1.5260 level for a spike to 1.5290/5300.

USD selling dominant

The rise in the pair can not be attributed to Pond strength alone but rather, a major sell-off in US Dollar across the board, despite the FOMC minutes did not negate at all the clear possibility for the commencement of the Fed’s tightening cycle. Fed fund futures are pricing the chances of a Dec hike near 70%.

GBP/USD key levels

Following the bullish breakout resolution, the next major area to conquer is seen at 1.53, with a breach higher likely to see gains accelerate and pave the way towards 1.5350 – major vacuum from 53 to 5350 -. On the downside, as long as above 1.5230/40, the market should remain solidly bid, with UK retail sales later on the day to inject further volatility.
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Source:: FX Street