GBP/USD has fallen out of favor

By FXstreet.com | Updated August 25, 2014 AAA

FXStreet (Guatemala) - GBP/USD is trading at 1.6584, up 0.09% on the day, having posted a daily high at 1.6600 and low at 1.6536.



GBP/USD has continued it’s decline from just below the 1.7200 as it has now been weighted by dollar strength and was breaking through critical support at 1.6545, past April monthly low. Marc Chandler, Global Head of Currency Strategy at Brown Brothers Harriman explains, "Sterling, which had been the market's darling until the middle of July amid ideas that the BOE could hike rates this year, has fallen out of favor. It has fallen for seven consecutive weeks, with a five-month low set before the weekend." Valeria Bednarik, chief analyst at FXStreet suggested that in the 4 hours chart, technical readings present a strong bearish tone as seen on previous updates, favoring now a steady decline towards 1.6465, March this year monthly low.



GBP/USD support and resistance levels



Support levels: 1.6525 1.6490 1.6465



Resistance levels: 1.6600 1.6630 1.6680



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