Forex: GBP/USD tight in range ahead of UK, US events

FXstreet.com (San Francisco) - GBPUSD spent the Asian session consolidating above 1.6100 as price gears up for another test of key resistance at 1.6130 after gaining ground for a second day overnight, reaching 3-day highs. "In the 4 hours chart the upside momentum remains strong yet only a clear advance beyond 1.6126 high could open doors for an extension towards 1.6200 for this Wednesday," explains Valeria Bednarik, Chief Analyst at FXstreet.com. The analyst identifies support levels at 1.6100, 1.6065 and 1.6025.

In the European session ahead, UK employment data for October and November are on offer at 09:30 GMT. Investors will be watching closely as they continue to ponder the significance of the loss of economic momentum in 4Q after the Olympics-inspired boost in 3Q. Later in the day, the spotlight will shift to the FOMC meeting, when an extension of the Fed's QE program is expected to be announced.

GBPUSD currently exchanges at 1.6110.