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GBP/USD edging above 1.22 this morning

Yesterday the GBP/USD managed to reach a new high on the week, at 1.2225, even after the BOE left interest rates on hold, at 5.25%. The reason for that was all about a weaker dollar and nothing to do with the pound. That explains why the GBP/USD subsequently fell back to 1.2167 right on the 4pm London fix. it did recover though, as the interim rebound in the dollar stalled ahead of the US close. The GBP/USD closed in the US at 1.2203. It has edged a bit higher so far today, from an earlier Asian low at 1.2185. The GBP/USD is right now on session highs, but the range has been tight so far. The risks to the pound remain elevated an in truth it is only the weaker dollar that is not highlighting those more at the moment. The UK economic outlook is still uncertain and the usual negative news flow continues to highlight that. That said, the chart configuration continues to look supportive after the building of a base, just under 1.21 was noted here yesterday. Beyond 1.2225, the next resistance level remains the 50 day moving average, which is still falling and in place today at 1.2302. The GBP/USD is currently trading at 1.2212

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