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GBP/USD seeking upside ahead of key risk events

FXStreet (Guatemala) - GBP/USD is trading at 1.5878, up 0.19% on the day, having posted a daily high at 1.5895 and low at 1.5835.

GBP/USD has recovered from the 1.59 handles supply to some extent in a slow but directional drift to the upside, which brings the higher territory and 1.59 back into target. However, sterling is becoming the hot topic between the majors, while the greenback is riding a correlation to improved risk sentiment and stock market rallying, we will have the UK’s unemployment data this week and quarterly inflation report.

With these data releases in mind, we can then delve deeper into the outlook for the UK in respect of the effects of a potential referendum on the EU, next years general election and wonder when indeed the BoE may decide to raise rates in fact? It looks more and more likely that it will not be within the first quarter of 2015 and not until after the general elections now. This will perhaps be slightly clearer by the end of the week after the data releases. Meanwhile, sterling is range bound and technically neutral short term within a broader bearish trend.

GBP/USD noteworthy levels

Current price is 1.5879, with resistance ahead at 1.5887 (Hourly 100 SMA), 1.5897 (Daily Classic R1/ Weekly Classic PP) and 1.5919 (Yesterday's High). Next support to the downside can be found at 1.5871 (Daily Classic PP), 1.5862 (Hourly 20 EMA), 1.5846 (Yesterday's Low) and 1.5835 (Daily Low).

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