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Forex: GBP/USD erases most gains on US session, held by 1.4915/20

Despite the British Pound strength seen during the day until mid-London morning to as high as 1.4982, profit taking and then greenback buying have erased most of those gains. The GBP/USD hasn't reached the 1.4900 mark yet as it is successfully being held by 1.4915/20 as of writing.

Behind more demand of the Dollar was better than expected data in the US. Retail sales in the US rose 1.1% in February, surprising the 0.5% expectations. January data was revised higher, from 0.1% to 0.2%. Ex-auto data surprised at 1.0%, beating 0.5% consensus, and saw the January figure being revised higher, from 0.2% to 0.4%.

Business inventories rose 1.0% in January, surprising investors on the upside as market consensus was of 0.4%. December data was revised higher, from 0.1% to 0.3%.

“The pair may start another correction towards the level of 1.4900 and then form head & shoulders reversal pattern”, wrote Roboforex.com analyst Igor Sayadov, pointing to the first target of this pattern at 1.5100.

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