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Forex pairs in this Article » GBP/USD
FXStreet (Edinburgh) - After bouncing off the 1.6660 region post-CPI figures, the GBP/USD is now gathering steam and creeping back to the boundaries of 1.6700 the figure.

GBP/USD just weaker, upside intact

Despite the current intraday correction, the broader picture for the sterling continues to be on the bullish camp; after all, some kind of correction seems to be overdue, and January’s CPI seems to be the perfect excuse. After hitting fresh multi-year highs beyond 1.6820 on Monday, spot partially retraced those gains to today’s mid 1.66s, ahead of tomorrow’s key UK employment data and BoE minutes. In light of recent softer-than-expected inflation figures in the British economy, Analyst James Knightley at ING commented, “We do expect to see an uptick later this year with a strengthening labour market likely prompting a gradual rise in wages over coming quarters, but it is not going to be troubling for the BoE. This means that they can continue focusing on ensuring the economic recovery continues – our view remains the first rate hike will come in February 2015”.

GBP/USD levels to watch

The pair is now losing 0.03% at 1.6699 with the immediate support at 1.6644 (low Feb.14) ahead of 1.6594 (low Feb.13) and finally 1.6513 (21-d MA). On the flip side, a breakout of 1.6741 (high Feb.18) would open the door to 1.6823 (2014 high Feb.17) and then 1.6845 (high Nov.18 2009).
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