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GBP/USD recovers to 1.6000

FXStreet (Edinburgh) - The sterling is accelerating its recovery on Wednesday, lifting GBP/USD back to the 1.5990 area.

GBP/USD bounces off 1.5860

After printing fresh 2014 troughs below 1.5870, the bulls decided to turn up and pushed spot back to the 1.5980 region. The current USD rally combined with softer-than-expected results from the UK economy – poor Services PMI in October - dragged GBP lower, recovering ground afterwards. Tomorrow’s docket will show Industrial/Manufacturing Production followed by the BoE MPC meeting. “In the weeks ahead both GBP and the USD are likely to be buffeted by economic data releases as the market continues to fine tune is expectations regarding the policy moves from both the Fed and the BoE. This may be responsible for some volatility in GBP/USD, but we expect that most activity will be contained in the 1.59 to 1.62 range in the next few months”.

GBP/USD levels to consider

At the moment the pair is retreating 0.15% at 1.5974 facing the next support at 1.5869 (2014 low Nov.5) ahead of 1.5854 (low Nov.12 2013) and then 1.5776 (low Sep.12 2013). On the other hand, a break above 1.6023 (10-d MA) would open the door to 1.6027 (high Nov.3) and finally 1.6035 (Tenkan Sen).

EUR/CAD picking up support on 1.42 handle

EUR/CAD is trading at 1.4229, down -0.59% on the day, having posted a daily high at 1.4335 and low at 1.4200.
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