FXstreet.com (Barcelona) - The Sterling is trading above 1.6700 level against the Greenback on consolidation mode after the last bullish movement which takes the pair from 1.6675, Oct 10 low, to test 1.6750 level several times.
During the Asian session, GBP/USD has been trading in a narrow range between 1.6710 and 1.6750, currently the pair is trading around 1.6730/40, just below opening price action at 1.6745 and MA55 hourly chart at 1.6730.
Carol Harmer, analyst at CharmerCharts.com, comments: 1..6720/10 is your short term support. A loss through here sees sellers on the case for 1.6640. Sellers will be looking to cover to here. You may see some buyers in at these lower levels, but they will not hold a break of 1.6640. A loss through here would see 1.6600 tested once more and this is where you would expect the market to halt initially. Buyers will enter, and only reverse a loss of 1.6580. Now if we can climb back above 1.6780 there is still the 1.6830/45 resistance to overcome. Buyers will look to take profits to these higher levels. Sellers will also intervene and it is only a break of 1.6860 that would negate further downside moves.