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Forex pairs in this Article » GBP/USD (Athens) – The GBP/USD has been trading slightly downwards since the kick-off of the Asian trading session, as after the yesterday’s mini-rally gains of around 85 pips, the cable is consolidating today a bit lower.

GBP/USD flirting again with the resistance of 1.6100; light signs of hope on US debt ceiling

The cable enjoyed yesterday a mini-rally of gaining roughly 85 pips; thus, traders shouldn’t taken aback by the fact that today, since the start of the Asian trading session the GBP/USD is on a small corrective downwards pullback trying to consolidate above the area of 1.6075. Moreover, a few hopeful signs emerged on late Monday, with President Barack Obama saying he would accept a short-term increase in the nation's borrowing authority to avoid a default. While we agree with Moody's CEO McDaniel opinion expressed through the news wires, saying that "sees very low" chance of US default, we do consider that it may take time to reach to an agreement. Thus, if the agreement is reached at the 12th hour it is plausible that till then, the tensions will not ease.

Technical Outlook on the GBP/USD

Karen Jones, Head Technical Analyst at Commerzbank suggests that the “GBP/USD as we highlighted last week, the market recent high of 1.6259 was not confirmed by the daily RSI, which has diverged. This coupled with the sell off on Friday, the break of the accelerated uptrend and reversal from the 2009-2013 downtrend at 1.6324 all suggest that the market has topped for now.”
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