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GBP/USD extends decline to 1.5445 after 220-pip decline

FXStreet (Cocoa) - The British Pound is trading down today against the US Dollar as the Cable is under pressure amid USD strength and Euro weakness. After falling 220 pips from 1.5670 in the European session, the GBP/USD is now trading at low as 1.5445.

Other factor that is hurting the Sterling is the negative inflation print that supports the case for a delay in the interest rate hike in the UK.

Currently, GBP/USD is trading at 1.5458, down 1.25% on the day, having posted a daily high at 1.5673 and low at 1.5447. The FXStreet OB/OS Index is reflecting oversold hourly conditions, while the FXStreet Trend Index is slightly bearish.

GBP/USD forecast

Remember that the FXStreet GBP/USD Forecas Poll said this weekend that the "GBP/USD is contained below 1.6000, and it is poised to return to 1.5000." The FXpoll commented that "banks are far more bearish than traders, forecasting sub 1.50 levels, weighting on the average sentiment."

British Pound to US Dollar levels

If the pair consolidates levels below 1.5500, it will find supports at 1.5420, 1.5400 and 1.5380. To the upside, resistances are at 1.5500, 1.5520 and 1.5560.

EUR/USD might see further declines – FXStreet

Valeria Bednarik, Chief Analyst at FXStreet, notes EUR/USD technicals remain supportive of further declines in the pair, with ECB member talks over QE and Greece along with the upbeat US housing starts acting as the catalyst for the move lower.
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AUD/USD drops to 1-week low after US housing starts

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