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Forex pairs in this Article » GBP/USD (Edinburgh) - The sterling remained within the range after the mixed tone from the UK docket on Tuesday, taking the GBP/USD back to the positive ground near 1.6440.

GBP/USD supported around 1.6420

The pair continues to consolidate the recent advance through the 1.6400 handle, finding decent support in the boundaries of 1.6420 so far. Data wise, the UK trade deficit narrowed to £9.732 billion in October from £10.09 billion, although it came in short of estimates at £9.35 billion. Further data showed that Industrial Production gained 3.2% year-on-year while the Manufacturing Production grew 2.7% YoY, vs. forecasts at 3.2% and 2.9%, respectively. Next on tap will be the GDP Estimate by NIESR (0.7% prev.). “Activity for October in the industrial and manufacturing sectors rose 0.4%mom apiece, with only moderate downward revisions to past data. This will provide a robust starting point for the fourth quarter and bodes well for 4Q14 GDP if not undermined by the service sector – which we think unlikely”, commented Rob Carnell, Analyst at ING.

GBP/USD critical levels

The pair is now up 0.04% at 1.6435 with the next barrier at 1.6443 (high Dec.2) followed by 1.6467 (2013 high Dec.10) and then 1.6500 (psychological level). On the flip side, a breakdown of 1.6415 (high Dec.9) would open the door to 1.6393 (high Dec,6) and finally 1.6344 (MA10d).
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