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GBP/USD at 2-week low, tide turned in bear's favour

FXstreet.com (Barcelona) - GBP/USD has suffered a major decline post Bernanke's speech, extending its yesterday's sell-off from 1.57 into fresh weekly low terrain right below 1.55. Today's 1% depreciation in the Sterling represents its lowest level in 2 weeks.

Bears rule the roost again

The sustained weakness below 1.5570, with daily close now confirmed below 1.55, hints at a critical transition from what has been a very fast 700+ pips move off 1.5035 lows to now expect a bearish biased to be established. Sellers will likely be on the lookout to select the right value areas to reinstate short positions.

In-House Chief Analyst sees further downside

Valeria Bednarik, Chief Analyst at FXstreet.com, also notes the 4 hours chart building up a bearish scenario, as pointed above, spotting key support now around 1.5420, 200 EMA 4-h chart. Sustained weakness below the latter number through a 1-hour candle opening bellow, "should point for a downward continuation towards 1.5250 by the end of the week" Bednarik said.

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