Forex: GBP/USD rejected from 1.6300

FXstreet.com (Córdoba) - Even though the pound managed to climb to near 1.6300 during the New York session, GBP/USD lost momentum and turned lower, as did risk appetite, and retraced most of its intraday gains.

GBP/USD stalled ahead of the 1.6300 psychological level, more precisely at 1.6294, and pulled back to the 1.6250 area before finding support. At time of writing, GBP/USD is quoting at the 1.6265 area, still up 0.2% on the day.

From a technical view, Fan Yang, analyst at FXTimes notes that GBP/USD is settling in a consolidation range between 1.6238 and 1.6305 after a rally from the December low near 1.6000 to its 2012-high near 1.6300.

"A break above 1.6305 with the RSI tagging 70 is a sign of bullish continuation. This bullish continuation scenario opens up the 2011 highs/resistance pivots at 1.6621 and 1.6748", said Yang. "On the other hand, a break below 1.6235 with the RSI below 40 will be a sign of topping, and suggests cable is in the middle of a bearish correction".

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