GBP / USD – Receiving Strong Support at 1.60

The last month or so has seen a slow and steady decline from the long term resistance level at 1.63. Last month it was able break through the resistance level at 1.59 and push towards the round number at 1.60. It paused and consolidated around 1.60 for a couple of days before pushing on higher however it ran into a brick wall at 1.63. Back at the end of April the sterling stopped and reversed strongly around 1.63 – this was always very likely to play a role in the sterling's recent rise and it didn't disappoint.

Over the last month or so, the 1.63 level has presented stiff resistance and demand has declined and the selling increased. Earlier this month, the sterling found support at 1.61 however more importantly in the last week, it has found solid support right at 1.60, the level which presented some resistance early last month. The 1.60 level now looms as the next most likely significant level and may continue to provide some measure of support. (Daily chart / 4 hourly chart below)

daily chart

GBPUSD Technical Analysis Candlestick 4 Hour Chart.

4 hourly chart

GBP/USD

Oct 15 at 23:30 GMT

1.6068/70

H: 1.6078

L: 1.6021

S3	S2	S1	R1	R2	R3
1.6000	1.5900	—	1.6100	1.6300	—

GBP/USD Technical

During the early hours of the Asian trading session on Tuesday, the GBP/USD has consolidated around 1.6070 after bouncing off support near 1.6020 over the last 18 hours.
Having broken through the 1.59 level early last month, it is now likely to offer support over the medium term, although in the last week or so, the 1.60 level has also demonstrated solid support.
Current range: Trading above the likely short term support level at 1.6000.

Further levels in both directions: