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GBP Trading Outlook (05-10-2011)

The Sterling (GBP) the GBP/USD was inspired from the bigger EUR/USD moves down in Europe before staging a solid rally into the close with stocks. EUR/GBP rallied for the first time in 4 days on the positive European banking capital news and could bounce further ahead of tomorrow&amp rsquo s BOE rate decision in which QE Asset purchases could be expanded by the UK central bank. Looking ahead, September Services PMI forecast at 50.5 vs. 51.1 previously.

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