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Forex pairs in this Article » GBP/USD (Chicago) - GBP/USD extends short-term fall below the 1.5980 zone to attempt consolidation above the 1.5970 front.

The BRC retail sales monitor – all (YoY) results were 0.8% vs. expected 1.1% with a PMI construction improvement at 59.4 vs. expected 58.9 released earlier today. The BoE will also release its interest rate decision later this Thursday, the same day when GDP data in the US is made public.
According to Jim Langlands from FXcharts, “cable has done more or less as expected today, trading a 1.5902/77 range so far, and currently sitting pretty much in the middle as the market awaits the BOE decision on Thursday, where no change is expected. UK construction PMI data today showed and expansion at the fastest rate in 6 years in October providing demand for sterling and helped it rebound from the 1.5902 lows. The short term outlook is pretty much the same as that for the Euro, in that we could see a short term squeeze to slightly higher levels, but the bigger picture would seem to be for Cable to see a stronger test of 1.5900 and eventually lower in the days ahead.”

GBP/USD Technical Levels

Technically speaking, the pair is offered at 1.5975 and oscillates between the supports aligned at 1.5951 (October 14th lows), 1.5916 (October 17th lows), 1.5816 (October 14th highs) and the resistances set at 1.6018 (January 25th lows), 1.6085 (August 19th highs) and 1.62 (October 23rd highs). Extending the short-term bullish channel that started last Friday, the pair breaks above the 1.5970 strong resistance and attempts to continue climbing ahead of key GDP data in the US later this week.
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