FXStreet (Edinburgh) - The sterling is returning to the 1.6580 region after the GBP/USD was once again rejected from the boundaries of 1.6600 the figure.

GBP/USD supported at 1.6570

The vicinity of the 1.6600 handle remains elusive for GBP bulls so far, although the area around 1.6570 has proved to be quite a decent support. Calendar in the UK economy is almost non-existent, let alone relevant. However, news and more significant releases will come from the USD side of the equation throughout the week and amidst the current rally in the greenback. “A minor bounce off the current 1.6543 August low is now being seen but eventual failure there cannot be ruled out in which case the 1.6467/54 March low and 78.6% Fibonacci retracement will be targeted. Longer term we look for losses back to 1.6000”, noted Axel Rudolph, Senior Technical Analyst at Commerzbank.

GBP/USD key levels

The pair is now up 0.02% at 1.6582 with the next resistance at 1.6602 (high Aug.21) ahead of 1.6633 (10-d MA) and then 1.6680 (high Aug.20). On the flip side, a breakdown of 1.6501 (low Aug.25) would expose 1.6460 (low Mar.24).

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