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The GBP/USD pair fell down to 1.5414 this Wednesday, but quickly recovered in the European morning, with the Pound being favored by the smaller-than-expected budget deficit in the UK. Net borrowing excluding public-sector banks was 9.4 billion pounds in September, down 1.6 billion pounds from a year earlier.

The pair however, has barely recovered its intraday losses, and continues trading around a strong Fibonacci level, the 61.8% retracement of its latest weekly decline at 1.5445. In the 4 hours chart, the 20 SMA has turned slightly lower, and stands now a few pips above the current price, whilst the technical indicators are aiming to turn higher, but firmly in neutral territory.

For almost a week, advances have met selling interest in the 1.5500 region, which means a clear break above the level is required to confirm a new leg higher, up to 1.5550/60 in the short term. Below 1.5415, the pair can decline down to 1.5380, the 50% retracement of the sale rally. 

View the live chart of the GBP/USD

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