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Forex pairs in this Article » GBP/USD
FXstreet.com (Barcelona) - The GBPUSD was able to fully retrace its London opening losses back to 1.6040/45 zone, but as the market got ahead of the NY opening, the pair fell down again to its lows just above the 1.6000 psychological level.

UK data released at the London session showed some impact of the Olympics. While both UK Goods and non-EU trade balances moved from deficit (£-7.149B and £-2.877B, respectively) to surplus (£9.844B and £4.972B, respectively) in August, and against deficit widening expectations, the Total Trade Balance changed from £1.517B surplus to £4.169B deficit, more than the expected £-2.550B.

The annualized UK Industrial Production contracted further from -0.8% to -1.2% in August, with a monthly -0.5% decline as expected. Manufacturing production shows a big annualized change, from +3.2% to -1.2%, with a monthly -1.2% contraction.

The BoE's Governor Mervyn King will speak today at 17:30 GMT. "The GBPUSD came under increasing downside pressure yesterday and will shortly encounter the 38.2% retracement support at 1.5995", wrote Commerzbank analyst Karen Jones, pointing to resistance at 1.6221 and risk for a slide back to the 1.5912/00 zone (50% retracement of the move up from July and also the 23rd August high).
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