GBP/USD held just above Friday's 3-month low early Monday in Europe amid fresh tensions in the Korean peninsula that fed the greenback with safe-haven demand while the sterling awaited a less important mortgage approvals data by the Bank of England, due later in the session.

At 8:25 am GMT, the pound was worth 1.5545 dollars, from previous close of 1.5531 and moving further away from 1.5454, its lowest since mid-September, hit Friday.

GBP/USD  has an immediate but weak support near 1.540, a retracement level and 200-day SMA and a stronger support is seen near 1.53, the level we get by mapping AB as CD. A break below 1.53 may confirm the end of the uptrend since late May and then it may target 1.51, level got by mapping PB as CQ, which is also a pivot point.

The greenback was also supported by a weak Euro due to more rating cuts on the region's periphery, and of late, a lower-than-expected German producer price index for Novemb er added to the losses of the single currency.

If the pair steadies near 1.53 through the lackluster year-end sessions and early next year US news showcase more problems for the world's largest economy, then chances for the pair to march towards early November high of 1.6298 are high.

With momentum indicator RSI showing the pair near oversold territory, it may target 1.5668 (R1) immediately on the upside before rising to 1.5719 (R2) and 1.5839 (R3) pivot points.

If

If the pair steadies near 1.53 through the lackluster year-end sessions and early next year US news showcase more problems for the world's largest economy, then chances for the pair to march towards early November high of 1.6298 are high. © Copyright 2010 International Business Times. All Rights Reserved.