FXStreet (Córdoba) – GBP/USD found support and trimmed daily losses although the recovery lacked follow-through and was capped by 1.4600, confining the pair to a phase of consolidation below the psychological level.
Cable is on track to post its eighth daily loss in a row, having lost more than 2% over that period without clear short-term catalysts. However, on the longer-run, divergence policy outlooks between Fed and the BoE, combined with signs of slowing economic growth and uncertainty over a possible Brexit are are among key factors driving the pound down.
Having bottomed out at 1.4532, last seen June 2010, GBP/USD is currently trading at 1.4577, recording a 0.35% daily loss.
GBP/USD levels to watch
As for technical levels, if GBP/USD breaks below 1.4532 (Jan 7 low), next supports are seen at 1.4500 (psychological level) and 1.4345 (Jun 2010 monthly low). On the flip side, immediate resistances could be found at 1.4600 (psychological level), 1.4639 (Jan 7 high), 1.4680 (Jan 6 high) and 1.4724 (Jan 5 high).
(Market News Provided by FXstreet)