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GBP/USD: bearish view

GBP/USD opened the week with a gap down at $1.5370, tried to recover, but was capped at $1.5475. Cable extended the downside, pressured by worried tone of the UK financial stability report and revised down Q1 GDP. As a result, the pair touched the $1.5200 mark on Friday. As of writing, the pair is trading around $1.5260.

We remain bearish for the sterling and expect a break below $1.5200 to open the way to $1.5000. Next resistance is now seen at $1.5300 (100-day SMA, top of the bullish Ichimoku, 61.8% Fibo retracement from the May-June rally). All rebounds will be seen as corrective as long as the pair holds below the $1.5600 resistance.

Chart. H4 GBP/USD

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