Forex: GBP/USD extends losses beneath 1.6000
Forex pairs in this Article »
GBP/USD
FXstreet.com (Córdoba) - The Cable finally fell below the 1.6000 mark on Wednesday weighed by strong risk aversion as fears intensified that US lawmakers would be unable to reach a budget agreement for next year and avoid the 'fiscal cliff'.
Against this backdrop, the dollar and the yen strengthened in detriment of riskier currencies and GBPUSD dropped over 50 pips throughout the day and touched its lowest in 5 days at 1.5965. At time of writing, the cross is trading at the 1.5970 zone, 0.3% below its opening price.
As for technical levels, if the GBPUSD breaks below 1.5965, next supports are seen at 1.5950 (200-hour SMA), 1.5915 (Nov 22 low) and 1.5900 (psychological level). On the upside, immediate resistance is now seen at 1.5990/95 (intraday level/100-hour SMA), 1.6020 (intraday high) and 1.6050/55 (Nov 23/27 highs).
Against this backdrop, the dollar and the yen strengthened in detriment of riskier currencies and GBPUSD dropped over 50 pips throughout the day and touched its lowest in 5 days at 1.5965. At time of writing, the cross is trading at the 1.5970 zone, 0.3% below its opening price.
As for technical levels, if the GBPUSD breaks below 1.5965, next supports are seen at 1.5950 (200-hour SMA), 1.5915 (Nov 22 low) and 1.5900 (psychological level). On the upside, immediate resistance is now seen at 1.5990/95 (intraday level/100-hour SMA), 1.6020 (intraday high) and 1.6050/55 (Nov 23/27 highs).
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