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GBP/USD hovering over 1.5850

FXStreet (Edinburgh) - The sterling is navigating the mid-1.5800s on Tuesday, with GBP/USD following the generalized lack of direction in the global markets.

GBP/USD focus on the BoE

Absent data releases and events in the UK economy, GBP traders will focus their attention on Wednesday’s releases of the labour market and the BoE’s Quarterly Inflation Report. Markets consensus expects the Claimant Count Change to decrease by 22.0K in October, and the jobless rate to tick lower to 5.9% in the three months ended in September. On the other side, all eyes will be in the QIR regarding the timing of the first rate hike by the central bank. According to Karen Jones, Head of FICC Technical Analysis at Commerzbank, “The new low (1.5792) has not been confirmed by the daily or weekly RSI, which has diverged and we are concerned that we will see a retracement ahead of any further weakness”.

GBP/USD levels to watch

As of writing the pair is retreating 0.04% at 1.5841 with the initial support at 1.5791 (low Nov.7) ahead of 1.5776 (low Sep.12 2013) and finally 1.5722 (61.8% of 1.4814-1.7192). On the upside, a break above 1.5918 (hourly high Nov.10) would open the door to 1.5960 (hourly high Nov.6) and then 1.5969 (10-d MA).

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