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Forex pairs in this Article » GBP/USD (Athens) – The GBP/USD is trading mostly sidelines the last couple of hours, having lost sight of the 1.6100 handle ahead of NFP data, UK September data.

GBP/USD pares early Asian gains over 1.6100 handle; sits on the fence ahead of US NFP data

The GBP/USD had been trading above 1.6100 zone the first opening Asian hours in Wellington, but as the time goes by, markets are refocusing on the big time of the NFP data. Yesterday, we witnessed a rally of the pound as the quietness on behalf of BoE was mostly interpreted in market terms as a ‘blessing in disguise.’ Elaborating on, while the cross was on edge and inclined to selling off on any soft news, the BoE stable monetary stance had an indirectly bullish impact for the cross which soared across the board yesterday against all its major counter-parts, apart from the Japanese currency. However, today we are ahead of the UK September trade balance data and the sterling seems to be hungry enough for another solid released figure; on the other hand, investors are now waiting for U.S nonfarm payroll data later on at 13.30 GMT hours and clues on the timing of the notorious tapering of the Fed’s economic stimulus.

Technical Aspects on the GBP/USD

The cross should have to overcome the initial resistance of 1.6154 (trend line from July of 2013), as well as of the 1.6235 (23.6% Fib exp.), to trend higher to 1.6259 (1st October high). On the downwards side, initial support could be found at 1.6122 (61.8% Fibonacci retracement of the move down from 1.6255 peak), while if that is breached, the cross might test the 1.5918 area of the 23.6% Fibonacci retracement.
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