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Forex pairs in this Article » GBP/USD (Edinburgh) -The sterling is picking up pace on Tuesday evening, with the GBP/USD decently bouncing off intraday troughs in the vicinity of 1.5960.

GBP/USD stabilizing around 1.6000

After hitting 8-month highs near 1.6200 on the taper fiasco last week, the pound started a correction lower following increasing risk aversion and better bid tone from the greenback. The recent lack of vigour to convincingly trespass multi-months highs may prompt investors to price in a top formation around 1.6170/80. When comes to technical studies, Karen Jones, Head of FICC Technical Analysis at Commerzbank, said the pair “held the accelerated uptrend and attention currently remains for an extension towards the 2009-2013 downtrend at 1.6331. Despite the directional move seen last week we continue to look for this to hold the topside and provoke reversal.”

GBP/USD levels to watch

As of writing the pair is losing 0.21% at 1.6009 with the next support at 1.5955 (low Sep.24) followed by 1.5948 (MA10d) and then 1.5893 (low Sep.18). On the flip side, a breakout of 1.6072 (high Sep.23) would expose 1.6145 (high Sep.19) and then 1.6164 (high Sep.18).
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