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Forex: GBP/USD upside capped at 1.5080

The sterling is keeping the positive bias on Monday, albeit the upside has faltered in the vicinity of 1.5080 so far.

“The BoE’s clear acceptance of higher for much longer CPI inflation suggests continued pressure on the nominal exchange rate. With fiscal policy constrained and conventional monetary policy exhausted, a resumption of asset purchases by the BoE looks increasingly likely… We now target a move down to the 2010 lows of 1.4239”, commented Paul Robson, analyst at RBS.

The cross is now up 0.21% at 1.5077 and a surpass of 1.51000 (psychological level) ahead would open the door to 1.5180 (MA10d) and then 1.5186 (high Mar.1).
On the downside, support levels line up at 1.5000 (psychological level) followed by to 1.4985 (low Mar.1) and finally 1.4949 (low Jul.12 2010).

Euro takes a breather but pressure persists

The US dollar trades firmer overall, although major crosses remain confined to recent ranges as markets begin the week with a cautious tone ahead of key events this week, including monetary policy announcements from eurozone and UK and the US employment report.
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