Forex: GBP/USD breaks below 1.6000 to Oct lows

FXstreet.com (San Francisco) - The Sterling has broken down the 1.6000 key level against the US Dollar and after falling around 65 pips from 1.6040 marked in the European session, the GBPUSD has traded 1.5975 as fresh lowest level since September 10.

Risk aversion hits markets with stocks and commodities nose diving, dragging dollar higher against major rivals. Currently the GBPUSD is moving at 1.5985, 0.25% below opening price action. Next support lies at 1.5960 (low Sep.10) then 1.5923 (low Sep.7) and 1.5905 (MA55d).

On the upside, a breakout of 1.6130 (MA10d) would open the door to 1.6142 (hourly high Oct.8) then 1.6163 (MA21d) and 1.6218 (high Oct.5).