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Forex pairs in this Article » GBP/USD (Barcelona) - From the 1.6179 high obtained during the London morning on the release of the UK employment data and BoE's October meeting minutes, the pair was able to fall down to as low as 1.6145 on NY opening flows. The GBPUSD is currently bouncing from there, on its way to the daily highs.

The MPC decision to keep interest rates and the asset purchases programme unchanged was a 9-0 unanimous vote. "With the BoE having serious questions about the impact of and need for further QE, we think that we should see a £25bn extension in November to a total of £400bn, with a continuation of but tapering off of asset purchases being a good middle ground", wrote Marcin Budkiewicz, Strategist at TD Securities.

The UK ILO unemployment rate surprised by dropping from 8.1% to 7.9%. Also positive was the 4K drop of claimants in September, instead of an unchanged figure as expected. August data was revised up, from -15K to -14.2K. In the US, housing starts improved from 0.758M to 0.872M in September, more than the 0.770M expected. Building Permits were also a positive surprise by rising from 0.803M to 0.894M (consensus of 0.810M).

Although Commerzbank analysts see the GBPUSD pushing higher, looking for the resistances of the 20-day MA (1.6129) and the near term line at 1.6178, they expect failure around there and to break below the 1.6026 to alleviate immediate upside pressure: "This would re-target the 1.5912/00 zone which is the 50% retracement of the move up from July and also the 23rd August high", wrote analyst Karen Jones.
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