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Forex pairs in this Article » GBP/USD (London) - GBP/USD has climbed over 100 pips on the release of positive Markit Services PMI.

The June number came in as 56.9 vrs 54.5 and 54.9 previous in May. The market has favoured Sterling in light of these morning data releases. There is sentiment for a more Dovish ECB this week, while GBP had been priced into the downside previously on hints that Carney’s approach would be negative for the pound going forward. So, all in all, a shift in positioning is occurring ahead of July 4th holidays and important data due at the end of the week. This afternoon could also be a test for the pair when the US releases the ADP Employment report. Markets will consider the report as a valuable indicator for next Friday’s NFP print (consensus 165K) and it might just make or break today's sentiment.

GBP/USD capped

1.5265 could cap intraday rallies and certainly below 1.5340 leaves the downside bias to be maintained. Karen Jones ta Commerzbank sights that key resistance remains as the 1.5736/87 area. This area is the 61.8% retracement of this years move and the 200 week moving average. The range is likely to be within 1.5300 and 1.5150.
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