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GBP/USD capped at 1.6000

FXStreet (Edinburgh) - The sterling is following the mood in the broader markets on Friday, with GBP/USD bouncing off 1.5960 although yet unable to surpass the psychological handle at 1.6000.

GBP/USD consolidates between 1.5980/1.6000

Spot is now looking to stabilize in the 1.6000 neighbourhood following the sharp pullback post-FOMC meeting on Wednesday, giving away more than a big figure from weekly tops near 1.6200 the figure. There are no data releases scheduled in the UK economy or the euro area today, leaving the price action to the mercy of the ampler risk trends, although the upbeat sentiment around the USD seems far to give up. Emmanuel Ng, FX Strategist at OCBC Bank commented, “a sustained break below 1.6000 towards 1.5900 may remain on the cards given the tide may continue to rest with the dollar in the near term and hitherto outsized positive BOE expectations continue to be managed lower”.

GBP/USD levels to consider

At the moment the pair is losing 0.10% at 1.5984 with the immediate support at 1.5961 (low Oct.30) ahead of 1.5940 (low Oct.16) and then 1.5875 (2014 low Oct.15). On the flip side, a breakout of 1.6038 (high Oct.30) would expose 1.6066 (21-d MA) and finally 1.6182 (high Oct.28).

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