FXstreet.com (Edinburgh) -The sterling is trading on a firmer tone on Monday, pushing the GBP/USD to test the vicinity of 1.6080, although retracing some pips afterwards.

GBP/USD closer to 1.6100

The pair is recovering part of the ground lost after hitting multi-month highs near 1.6300 the figure last week, now eyeing the 1.6100 handle after dipping to 1.6025/20 overnight. Derek Halpenny, European Head of Global Markets Research, suggested, “The pound has begun to under-perform a touch despite continued good data and unlike the euro we believe the pound would suffer on any escalation in financial market turmoil given much of the recent move higher of late was fuelled on optimism over economic recovery which would be put in some doubt if market turmoil intensified”.

GBP/USD technical levels

The pair is now up 0.31% at 1.6058 with the immediate resistance at 1.6100 (psychological level) ahead of 1.6109 (MA10d) and finally 1.6179 (high Oct.4). On the downside, a break below 1.6015 (low Oct.7) would open the door to 1.6006 (low Oct.4) and then 1.5954 (low Sep.24).