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Forex pairs in this Article » GBP/USD (Edinburgh) -The bullish momentum around the sterling is losing steam at the moment, with the GBP/USD hovering over 1.6230/25 after hitting fresh multi-month highs around 1.6260.

GBP/USD following risk

The 1.6250/60 band seems to be quite a tough barrier for the pair so far, proved by the recent unsuccessful attempts to follow through it despite the favourable risk-on atmosphere. The pair managed to comfortably leave the poor result from the Construction PMI in the UK behind, missing estimates and coming in lower than the August’s reading. “As noted of late, recent gains are now “stretched”, despite the more positive stance in weekly charts. Any slippage below 1.6100 should now raise some concern, though the risk of unraveling recent gains would only develop on a close below the interim 1.5955 of late September”, suggested Tim Riddell, Head of Global Markets Research at ANZ.

GBP/USD relevant levels

As of writing, the pair is up 0.23% at 1.6233 with the next resistance at 1.6300 (psychological level) followed by 1.6380 (2013 high Jan.2) and then 1.6400 (psychological level). On the flip side, a break below 1.6162 (low Oct.2) would expose 1.6100 (low Sep.30) and finally 1.6092 (MA10d).
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