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Forex pairs in this Article » GBP/USD (Edinburgh) -The sterling is following its risk-associated peers on Tuesday, dragging the GBP/USD from overnight peaks in the boundaries of 1.6100 to the current area of 1.6070/75.

GBP/USD focus on US, BoE

Ahead in the week, the events in the US will be the main drivers of the price action, adding volatility to the USD side of the pair. The BoE MPC is due on Thursday, although market consensus expects the central bank to stay put and to release no statement, supporting the pound. In the opinion of Paul Robson, FX Strategist at RBS, “Our favoured view was that we could still have a bit of powder left for an attack on the 1.6310/30 area, even if we did go a bit lower on the way. Hence our preferred range going forward in GBP/USD was 1.57/1.58 support to 1.62/1.63 resistance”.

GBP/USD key levels

The pair is now losing 0.10% at 1.6080 facing the next support at 1.6015 (low Oct.7) ahead of 1.6006 (low Oct.4) and then 1.5954 (low Sep.24). On the upside, a break above 1.6100 (psychological level) would open the door to 1.6109 (MA10d) and finally 1.6179 (high Oct.4).
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