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Forex pairs in this Article » GBP/USD (Edinburgh) - After hitting multi-week highs in the vicinity of 1.6220, the GBP/USD has now returned to the 1.6190/1.6200 region.

GBP/USD firmer on BoE, UK economy

The pair extends its march north on Friday, climbing to levels last seen in late October beyond 1.6200 the figure. The upbeat tone from the UK economy continues to prop up the bull run while market expectations regarding the first rate hike in the British economy adds to the sentiment. Jonathan Pryor, Corporate Treasury Analyst at Investec, assessed “The pound continues to trade strongly as the strengthening UK recovery may possibly see policy divergence going forward between the UK, US and Euro-area. While the Euro-area and US are still sounding dovish, the BoE have brought forward expectations of reaching their 7% unemployment threshold and potentially normalising rates. GBPUSD came close to 1.6200 overnight and we are now close to the 2013 highs at 1.6260 with a break and close above these potentially signalling a move to 1.6500”.

GBP/USD levels to consider

As of writing the pair is gaining 0.15% at 1.6198 and a breakout of 1.6248 (high Oct.25) would aim for 1.6258 (high Oct.23) and then 1.6260 (high Oct.1). On the downside, the initial support lines up at the psychological level at 1.6100 followed by 1.6088 (MA10d) and finally 1.6080 (MA30d).
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