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GBP/USD stabilizing around 1.6640

FXStreet (Edinburgh) - The sterling is now looking to stabilize against the USD, taking the GBP/USD to the area of 1.6640/45 region on Monday.

GBP/USD keeps the range

After an ephemeral drop to test the critical support at 1.6600, spot managed to pick up pace and attempt a bull run that stalled near 1.6680. Ahead in the week, Inflation Report Hearings (Tue), Q4 GDP (Wed) and Governor Carney’s speech (Fri) would be in the spotlight. “The only negative for us on this chart at the moment is that the uptrend line since July has broken and we need to check that its not a break/retest and fail of that trend line”, observed Paul Robson, Senior FX Strategist at RBS.

GBP/USD levels to consider

As of writing the pair is up 0.08% at 1.6652 with the immediate hurdle at 1.6690 (high Feb.21) followed by 1.6700 (high Feb.20) and then 1.6734 (high Feb.19). On the downside, a breach of 1.6599 (low Feb.24) would target 1.6594 (low Feb.13) en route to 1.6527 (21-d MA).

Session Recap: Markets in search of direction

Quiet start for the trading week, with the USD trading mixed against major rivals and stocks also mixed in Asia and Europe. Markets seem to be in search of a direction with little reaction to the G20 meeting at the weekend.
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