FXstreet.com (Córdoba) - The Pound managed to rise back above 1.6000 after the release of housing price index data in the U.S. GBP/USD found support at 1.5975/80 (intra-day low) and now is positive for the day as it trades at 1.6015/18, 0.11% above today's opening price. To the upside, immediate resistance lies at 1.6030/35 and above at 1.6065/70 (intra-day high).

James Hyerczyk, from ForexHound.com comments: The GBP USD popped to the upside overnight as traders returned to work after an extended holiday. This market was unable to hold on to its gains, however, and retreated to the downside. Investors are still concerned about the U.K. budget deficit and struggling economy. A small support base is being built on the charts, which suggests further upside is possible.

Lack of fresh positive economic news and coming holidays could limit the upside movement according to James.