Forex: GBP/USD falls to fresh lows

FXstreet.com (Córdoba) - The dollar strengthened further during the American session and extended gains versus most competitors as the lack of agreement in US budget weighed on sentiment with moves exacerbated by the thin trading conditions ahead of the Christmas holiday.

GBPUSD broke below the 1.6140 support area in recent dealings and stretched to a 10-day low of 1.6124 before finding support. At time of writing, GBPUSD is quoting at the 1.6135 zone, 0.2% below its opening price.

"With a daily double top at 1.6305 area, the GBPUSD outlook is neutral to bearish, with a key support in the 1.6065 price zone", says Valeria Bednarik, chief analyst at FXstreet.com. "If the level gives up, selling pressure will likely increase exposing 1.5990 first, and 1.5820 area then, neck of the mentioned figure. Losses below are not seen at the time being".

"The upside remains capped by 1.6170 and only above the pair may attempt a run back towards 1.6280/1.6300 area, while a break of the 2012 high, will open doors for a run towards 1.6500", the analyst added.