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Forex pairs in this Article » GBP/USD (Edinburgh) - A sudden bout of buying interest is lifting the sterling higher on Monday, pushing the GBP/USD beyond the boundaries of the key 1.6200 handle.

GBP/USD focus on the FOMC

With the UK GDP figures now in the rear view mirror, the pair’s main focus should be in the next FOMC meeting due on Wednesday, although consensus expect a neutral tone from Bernanke & Co. Data-wise in the UK, Money Supply, Mortgage Approvals, Consumer Credit and Net Lending to Individuals are due tomorrow ahead of Consumer Confidence by Gfk, Housing Prices by Nationwide and the Markit Manufacturing PMI due in the second half of the week. According to Tim Riddell, Head of Global Markets Research at ANZ, “Setbacks from 1.6260 fitted a profile of short-term corrections of the interim rally seen since late August. This now leaves GBP poised for gains to balance the initial gains off the 1.4810-15 low. This provides a series of interim targets. A break above 1.6300 should allow for a push towards the 1.6450-1.6560 area with potential for an extended move towards 1.6800 if the rally gains pace”.

GBP/USD levels to watch

At the moment the pair is up 0.20% at 1.6199 with the next resistance at 1.6248 (high Oct.25) ahead of 1.6258 (high Oct.23) and then 1.6260 (high Oct.1). On the flip side, a break below 1.6162 (low Oct.28) would open the door to 1.6150 (low Oct.25) and finally 1.6138 (MA10d).
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