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GBP/USD consolidates above 1.6100

FXStreet (Edinburgh) - The sterling is now looking to extend the current rebound, lifting the GBP/USD beyond the 1.6100 handle.

GBP/USD hurt by poll results

The sterling intensified its downbeat momentum on Tuesday, dropping to multi-month lows near 1.6060 during early trade, following results from the Scottish referendum polls due on September 18th. Spot managed to leave behind poor trade balance results in July, reaching a £10.18 billion deficit, although manufacturing and industrial releases surprised to the upside. “The relentless down-move still appears incomplete but oversold conditions will likely slow the pace any further decline. Expect recovery to hold below 1.6150 for another leg lower towards 1.6060”, noted Quek Ser Leang, Market Strategist at UOB Group.

GBP/USD levels to consider

The pair is now advancing 0.10% at 1.6121 with the next resistance at 1.6270 (high Sep.8) ahead of 1.6340 (high Sep.5). On the downside, a breach of 1.6060 (low Nov.19 2013) would open the door to 1.6003 (50% of 1.4814-1.7192) and finally 1.5988 (low Nov.14 2013).

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