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GBPUSD: sharp drop from high

Fundamental analysis:

GBP/USD remained volatile around 1.27316, with the Confederation of British Industry's (CBI) net output balance for the three months to August falling to -19 from +3 in July, the lowest reading since September 2020. The net balance shows the difference between the proportion of factories whose output rose and the proportion of factories whose output fell.

GBPUSD - 4-hour K-line chart shows:

Brief technical analysis:

Looking at the 4-hour chart: the high-level short-term momentum has fallen sharply, the short-term decline may continue, the overall short-term sentiment in the market is shrouded, the MACD indicator is weakly finishing on the upper side of the 0 axis, and the RSI indicator is hovering near the 50 balance line;

Resistance levels: 1.27521 1.27658

Support levels: 1.27195 1.27077

Trading strategy: bearish below 1.27387, target 1.27195 1.27077
Alternative strategy: Bullish above 1.27387, target 1.27521 1.27658

The above information is provided by special analysts and is for reference only. CM Trade does not guarantee the accuracy, timeliness and completeness of the information content, so you should not place too much reliance on the information provided. CM Trade is not a company that provides financial advice, and only provides services of the nature of execution of orders. Readers are advised to seek relevant investment advice on their own. Please see our full disclaimer.

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