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GBP/USD drops near 1.5010

FXStreet (Edinburgh) - The sterling is following the mood from its European counterpart on Thursday, with GBP/USD falling to sub-1.5020 levels.

GBP/USD in 19-month lows

The pair is accelerating its intraday decline to levels last seen in July 2013 around 1.5015/10, opening the door for a test of the psychological support at 1.5000 should the selling pressure extends. The sell off in the risk-associated universe intensified after the ECB launched an 18-month expanded programme of bond purchases worth €1.1 trillion, surpassing market expectations.

Next of relevance in the UK docket will be tomorrow’s Retail Sales for the month of December, with consensus expecting headline sales to have contracted 0.6% inter-month, while sales excluding Fuel would also have contracted 0.7% MoM.

GBP/USD levels to watch

At the moment the pair is retreating 0.65%at 1.5032 and a breach of 1.5000 (psychological level) would open the door to 1.4845 (low Jul.10 2013). On the upside, the initial hurdle lines up at 1.5213 (high Jan.22) followed by 1.5267 (high Jan.15) and then 1.5270 (high Jan.14).

USD/JPY hovering around 118.00

USD/JPY dropped to 117.20 as Draghi announced a new stimulus program in Europe but then it bounced to the upside, and currently it hovering around 118.00.
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EUR/USD keeps falling and breaks below 1.1400

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