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Forex pairs in this Article » GBP/USD (Edinburgh) -The bid tone around the sterling is gathering steam on Thursday, lifting the GBP/USD beyond the key resistance at 1.6100.

GBP/USD firmer after BoE

Very positive start of November for the GBP so far, boosted by auspicious UK data throughout the week and reinforced by today’s BoE inaction. The next key event will come from the USD-side of the equation, with tomorrow’s US Payrolls (130K exp.). After today’s MPC meeting, Analyst James Knightley at ING assessed, “With house prices set to continue rising sharply, inflation likely remaining elevated and the shrinking pool of available labour (hopefully) triggering a pick-up in wages, we think the BoE could follow up with a modest rate hike in 1Q15”.

GBP/USD relevant levels

The pair is now advancing 0.14% at 1.6105 with the next resistance at 1.6118 (high Nov.6) followed by 1.6122 (61.8% of 1.6258-1.5904) and then 1.6143 (high Oct.29). On the downside, a break below 1.6010 (low Nov.7) would open the door to 1.5949 (low Nov.5) and then 1.5904 (low Nov.4).
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