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Forex pairs in this Article » GBP/USD (Edinburgh) - The GBP/USD rapidly left behind the 1.6100 mark on Friday and is now consolidating recent gains in the proximities of 1.6140, buoyed by the risk-on backdrop.

GBP/USD attention to BoE minutes

There will be a light calendar for the sterling this week, however the BoE minutes and the Inflation Report Hearings on Wednesday plus the UK’s public sector figures on Thursday should be enough to drive the pair’s price action from the GBP-side of the equation. In the meantime, recent solid results from the UK economy and the tone favourable to riskier assets would continue to prop up the pair. Analysts at BTMU assessed “Economic conditions in the UK are set to remain supportive for the pound in the near-term given the combination of strong cyclical economic growth momentum and easing inflation pressure… The pound is also deriving support from building investor expectations that monetary policy might continue to diverge ahead moving yield spreads in the UK’s favour. Still with the interest market in the UK already pricing in the timing of the first BoE rate hike in the 1H 2015, the scope for further pound upside in the near-term may prove only modest”.

GBP/USD critical levels

At the moment the pair is advancing 0.12% at 1.6134 facing the next resistance at 1.6143 (high Oct.29) ahead of 1.6163 (76.4% OF 1.6258-1.5854) and finally 1.6207 (high Oct.28). On the flip side, a breakdown of 1.6104 (low Nov.18) would open the door to 1.6048 (MA10d) and then 1.5988 (low Nov.14).
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