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GBP/USD trims daily losses but remains near 5 ½-year lows

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 7, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Córdoba) - GBP/USD managed to recover slightly from fresh 5 ½-year lows but remains under pressure across the board, being one of the worst performer in the FX market along with commodity currencies.

    Cable extended losses into an eighth consecutive day on Thursday and struck its lowest level since Jun 2010 at 1.4532 before pausing the decline. Having recovered a few pips, GBP/USD is currently trading at the 1.4575 zone, still down 0.37% on the day.

    Policy divergence between the Fed and the BoE, which seems in no hurry to raise rates, combined with signs of slowing economic growth and uncertainty over a possible Brexit are all factors weighing on the pound.

    GBP/USD levels to consider

    As for technical levels, if GBP/USD falls 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, short-term resistances could be found at 1.4639 (Jan 7 high), 1.4680 (Jan 6 high) and 1.4724 (Jan 5 high).
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