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Forex: GBP/USD in 6-month lows, below 1.5640

The sterling is rapidly losing ground against the buck on Tuesday, falling to levels last seen in August 2011 around 1.5640, as bearishness around GBP is growing bigger.

According to expert Karen Jones at Commerzbank, the recent failed attempt to break above the 200-day moving average at 1.5889 would hint a descent to test 1.5689 en route to 1.5632. “We would expect this to hold the initial test, but longer term, we in fact favour a break below here to 1.5271/35, the 2012 low”, assessed the analyst.

At the moment, the cross is down 0.82% at 1.5634 facing the next support at 1.5608 (Lower Bollinger).
On the flip side, a surpass of 1.5879 (high Feb.1) would aim for 1.5889 (MA200d).

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