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Forex pairs in this Article » GBP/USD (Athens) – The GBP/USD has been heading slightly upwards since the early kick off of the Asian trading session, but the cable still seems to falter ahead of the crucial UK PMI data release.

GBP/USD faltering ahead of the UK Markit Services data

The GBP/USD seems to falter ahead of the today’s PMI Services data. Elaborating on, if the data come out as estimated –nearly at 7-year high – we will probably witness increased bets on when the BoE will start to exit its easing cycle policy as the more robust recovery will push Governor Mark Carney to dampen the monetary easing and vice-versa. Therefore traders should bear in mind that the UK PMI data might spur increased volatility regarding the sterling, due to the fact that traders might probably link the data released with the BoE monetary policy. Nevertheless, if the data let down traders the cable will be probably get under severe pressure and Carney will continue to set up a series of non-standards monetary policies to further insulate the economy.

Technical Outlook on the GBP/USD

Karen Jones, Head Technical Analyst at Commerzbank mentions that the GBP/USD continues to inch higher and looks capable of extending gains to the 2009-2013 down trend at 1.6327, where we would look for signs of failure. Our personal aspect of view is as long as the daily momentum remains in the upside and above the 21 – HMA at 1.6203, it might well threaten the 2013 highs as of 1.6380 (posted in 2nd January of 2013.)
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