FXstreet.com (Córdoba) - The Pound is holding to gains against the Dollar ahead of the opening bell at Wall Street. GBP/USD failed to hold above 1.6000 but it found support at the 1.5970 zone. Currently it trades at 1.5988/91, 0.47% above today's opening price.
Below 1.5970, the next support lies at 1.5935 and 1.5900 (intra-day low). The pair continues to move supported by an upside trend and if it manages to consolidate above 1.6000 it could rise further. Resistance levels could be located at 1.6045 and 1.6120 (Oct 8 high).
Mitul Kotecha, from Econometer.org affirms: GBP faces headwinds from expectations that the Bank of England will extend its quantitative easing especially in the wake of recent data whilst news that the Center for Economics and Business Research (CEBR) predicted that the Bank of England (BoE) will keep its base rate unchanged until at least the end of 2011 came as another blow.