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GBP/USD wobbling around 1.6000

FXStreet (Edinburgh) - The sterling remains in a sideline pattern on Tuesday, taking GBP/USD to the area around the psychological limestone at 1.6000.

GBP/USD looks to the US for direction

Absent relevant data or events in the UK economy, spot will focus on the US data releases later on today for better clues regarding direction, at least until the BoE MPC meeting due on Thursday. In the meantime, the pair seems comfortable hovering over the 1.6000 neighbourhood today, unable to break the consolidative mood either way. According to Karen Jones, Head of FICC Technical Analysis at Commerzbank, “Rallies will find initial resistance at 1.6062 (20 day ma) ahead of key resistance at 1.6185. Short term onus remains on the downside, while we trade below 1.6185”.

GBP/USD levels to consider

At the moment the pair is up 0.16% at 1.6000 with the immediate hurdle at 1.6027 (high Nov.3) ahead of 1.6038 (high Oct.30) and then 1.6055 (Tenkan Sen). On the flip side, a breakdown of 1.5928 (low Nov.3) followed by 1.5875 (2014 low Oct.15) and finally 1.5854 (low Nov.12 2012).

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