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Forex pairs in this Article » GBP/USD (Edinburgh) -The sterling is trading on a softer tone on Tuesday, dragging the GBP/USD to challenge session lows in the vicinity of 1.6120.

GBP/USD extends its correction from 1.6250

After testing peaks beyond 1.6250, the pair sparked a correction lower to the current area near 1.6120 in a context of profit taking amongst traders and ahead of tomorrow’s BoE minutes. Markets expectations point to a neutral stance from the minutes, giving extra support to the pair. However, in the very near term, today’s price action would highly hinge on US Payrolls (180K exp.). “We continue to remain neutral on the GBP-USD in the near term and this week, look towards BOE MPC minutes on Wednesday and 3Q GDP numbers on Friday for domestic cues. In the interim expect the pair to be repelled by 1.6200 on the topside while risks may be for a further consolidation towards 1.6100 in the near term”.

GBP/USD levels to watch

At the moment the pair is retreating 0.12% at 1.6126 with the next support at 1.6100 (psychological level) followed by 1.6039 (MA10d) and then 1.5940 (low Oct.17). On the upside, a break above 1.6240 (high Oct.3) would aim for 1.6252 (high Oct.2) and finally 1.6260 (high Oct.1).
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