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Forex pairs in this Article » GBP/USD
FXStreet (Edinburgh) - The pound is now easing some ground, taking the GBP/USD back to the 1.6520 area after hitting 2-week highs near 1.6560.

GBP/USD boosted by BoE

Today’s upside is backed by the hawkish tone from the BoE’s Quarterly Inflation Report, where Governor Carney revised up the economic growth forecasts for the UK economy to 3.4% in 2014 from 2.8%. Regarding consumer prices, the central bank said they would gyrate around the bank’s target. Ross Walker, Strategist at RBS, concluded, “the BoE's general rhetoric around the economic outlook seems barely altered (ie, cautious/dovish) and the key economic variable for monetary policy – the CPI inflation projection – is marginally lower. On balance, the risks around our forecast for the first Bank Rate hike in Q3 2015 have shifted towards an earlier rise (ie, Q2 2015)”.

GBP/USD levels to watch

The pair is now up 0.43% at 1.6524 with the next hurdle at 1.6565 (high Jan.30) followed by 1.6606 (high Jan.29). On the flip side, a break below 1.6425 (low Feb.12) would open the door to 1.6392 (low Feb.11) and finally 1.6384 (low Feb.10).
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