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GBP/USD moves toward 1.6100

FXStreet (Córdoba) - The recovery of the Pound against the US dollar was short lived. After rebounding from 1.6100 (daily low), GBP/USD rose to 1.6185 but then turned to the downside amid USD strength during Wall Street trading and moved toward 1.6100.

Ahead of New York closing the pair trades at 1.6107, headed toward the lowest close since November 20th, 2013 and 230 pips below where it finished on Friday. Cable failed to close a bearish gap that remains open, between 1.6320 and 1.6230.

The pound was the worst performer on Monday across the board in the currency market and remains under pressure ahead of the Scottish independence referendum to be held September 18th.

GBP/USD technical outlook

According to Valeria Bednarik, Chief Analyst at FXStreet hourly chart shows the 20 SMA acting as an intraday resistance around 1.6155 with momentum heading lower, in negative territory. Regarding the 4-hour chart Bednarik affirms: “indicators head lower despite in extreme oversold conditions, exposing as next probable target the critical 1.6000 figure”.

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