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GBP/USD consolidates above 1.6700

FXStreet (Edinburgh) - The sterling is now attempting to consolidate the recent break above the 1.6700 handle, with the GBP/USD around 1.6725/30.

GBP/USD boosted by Carney

The pound started the week on a firmer footing, or at least its sell off from last week halted following BoE’s Carney’s appreciations over the weekend. The central banker noted that the BoE could hike rates before an improvement in real wages. The comments relieved the sterling somehow, managing to regain the 1.6700 barrier although gains are limited around the 1.6740 level so far. In the opinion of Emmanuel Ng, FX Strategist at OCBC Bank, “In the interim, the 1.6700 level and the 200-day MA (1.6671) may remain viable downside loci if market reaction to Carney’s comments are diluted beyond Monday”.

GBP/USD levels to watch

As of writing the pair is advancing 0.25% at 1.6733 with the next resistance at 1.6773 (Tenkan Sen) followed by 1.6783 (23.6% of 1.7192-1.6657) and finally 1.6787 (10-d ma). On the flip side, a break below 1.6710 (low Aug.18) would open the door to 1.6676 (low Aug.15) and then 1.6657 (low Aug.14).

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GBP/USD consolidating at highs- FXStreet

FXStreet Chief Analyst Valeria Bednarik observes that the GBP/USD has been holding close to its daily high of 1.6737 after rising at the weekly opening.
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