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Forex: GBP/USD breaches above 1.5000

The GBP/USD was limited by 1.4950 on the upside during the London morning, but after the US data load the market breached that resistance and has popped above the 1.5000 psychological level, reaching as high as 1.5019 as of writing.

The US current account deficit narrowed from $-112.4B to $-110.4B in Q4, beating the $-112.80B consensus. However, Q3 data was revised much higher from $107.51.

In the week ending at March 10 week, initial jobless claims dropped from 342K (revised from 340K) to 332K, against a market consensus pointing to 350K. Continuing claims rose from 3.113M to 3.024M, better than the expected 3.100M.

As expected, the US Producer Price Index rose 0.7% (previously at 0.2%) (MoM) and 1.7% (previously at 1.4%) (YoY) in February. Excluding food and energy, data eased from 1.8% to 1.7% (YoY), with a monthly rise of 0.2%.

"The GBP/USD currency pair finished the first ascending wave. I think today the price may complete the correction towards the level of 1.4900", wrote Roboforex.com analyst Igor Sayadov, pointing to a new ascending structure to reach the level of 1.5040 and then a move towards the target at 1.5100.

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