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Forex pairs in this Article » GBP/USD (Edinburgh) - The pound is now hovering over session lows around 1.6355/50 on Monday, taking the GBP/USD lower from fresh 2013 highs in the vicinity of 1.6440 overnight.

GBP/USD supported by 1.6260

The pair is losing ground for the first time in five sessions although the broader bullish theme seems intact. Better-than-expected manufacturing PMI from the British economy did nothing to halt today’s sell-off, ahead of the BoE MPC gathering and the Autumn Forecasts Statement due on Thursday. “Sterling's advance has taken it to within striking distance notable resistance in the $1.6400-25 area. It is where the long-term trend line drawn off the 2009 high near $1.70 and the 2011 high near $1.6750 intersects. It is also a retracement objective of the decline since from the 2007 high near $2.1150. If offers in this area are successfully absorbed, technically potential may extend into the $1.70-$1.73 area. Support is likely what appeared to be a double top in October near $1.6260”, suggested analysts at BBH.

GBP/USD key levels

At the moment the pair is losing 0.05% at 1.6358 and a break below 1.6315 (low Nov.29) would expose 1.6277 (low Nov.28) and finally 1.6212 (MA10d). On the flip side, the initial hurdle aligns at 1.6443 (2013 high Dec.2) would bring 1.6455 (high Aug.29 2011) and then 1.6500 (psychological level).
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