FXStreet (Barranquilla) – The British pound is falling 0.68% so far today against the US Dollar mostly caused by the US Dollar Index rally over 95.00. After a 100-pip decline in the American session, the GBP/USD is now testing the 200-hour MA of 1.5710.
The GBP/USD is extending losses for third day in a row; since June 19 high of 1.5900, the pair completes a 200-pip decline. However, the British Pound is demonstrating relative strength as EUR/GBP has its sight set on new yearly lows at 70.20.
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Currently, GBP/USD is trading at 1.5715, down 0.68% on the day, having posted a daily high at 1.5835 and low at 1.5709. GBP/USD spot is in oversold territory according to the hourly FXStreet OB/OS Index, while the FXStreet Trend Index is slightly bearish.
GBP/USD Forecast
According to the latest GBP/USD Forecast Poll, the pair developed a top underway, “all the way down: despite Pound’s latest strength, market expectations are now of a steady decline, back towards the 1.5300 region.”
Anil Panchal pointed out in the same GBP/USD Forecast Poll that “even after breaking the 1.5850 mark, the pair seems incapable of advancing further signaling a pullback to 1.5510 soon.”
However, Richard Perry from Hantec Markets also commented that “the outlook has been improved significantly with the dovish Fed. The run higher is overbought near term and could be open to some profit taking.” Perry expects “the medium/long term choppy trading to continue.”
GBP/USD levels
If the pair manages to break below the 1.5710 level, it will find supports at 1.5680, 1.5650 and 1.5620. To the upside, resistances are at 1.5760, 1.5810 and then 1.5900.
(Market News Provided by FXstreet)