Forex: GBP/USD moves above 1.61, eyes 1.6130

FXstreet.com (San Francisco) - GBPUSD broke out of its usual holding pattern seen in past Asian sessions to rally back above 1.6100 and rise to an intraday high of 1.6116. The lift was driven by positive sentiment, led by regional bourses and optimism for the Chinese economy, enabling spot to trade with a positive bias so far this Wednesday.

Valeria Bednarik, Chief Analyst at FXstreet.com observes static support areas around 1.6085, and at 1.6060; "so unless a break below this last, the downside remains limited," she says. The analyst also says that a bullish break above 1.6130 may open scope for the pair to advance toward key resistance at 1.6170.

GBPUSD last trades at 1.6110. Ms. Bednarik identifies support levels at 1.6085, 1.6060 and 1.6025, while resistance levels are seen at 1.6130, 1.6170 and 1.6210.

With little UK specific data on offer in the European session ahead, GBP action will be driven primarily by sentiment; though, following a slew of euro zone PMI readings, Markit Services PMI for November is on the docket at 09:28 GMT (expected to remains in expansion; 51.1).