GBP Trading Outlook (25-10-2010)

The Sterling (GBP) mild selling pressure pushed Cable back to 1.5650 as traders pick higher yielding pairs such as the Aussie and Euro to express USD weakness. GBP/JPY is struggling to find support under Y130 and is technically weak. Clarification on the UK QE situation will be needed to allow the GBP to regain some strength. Overall the GBP/USD traded with a low of 1.5657 and a high of 1.5750 before closing the day at 1.5678 in the New York session.

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