FXstreet.com (Barcelona) - The pound is down around 100 pips on the day respect to the dollar and the pair has been moving sluggishly sideways below the 1.5965 level for most of the late European session.

Currently, the GBP/USD is operating in the range of 1.5893 on the downside and 1.5945 above.

Peter Rosenstreich, analysts for Advanced Currency Market, points to concerns the market is having over the pound's strength due to the UK's present monetary policy which is coming under fire.

For now, the GBP remains subdued by concerns about sovereign credit ratings, and just yesterday, the leader of the government opposition leveled harsh criticism at Gordon Brown during Prime Minister's Questions over his credibility in managing the budget deficit, said Rosenstreich.

The GBPUSD has already broken significant support levels in previous days, and 1.6050-70 now looks like an area of considerable resistance for any rallies, he added.