Forex: GBP/USD finds support at 1.5630; Back above 1.5650

After falling 170 pips from 1.5800, the Sterling has found support against the Greenback at the 1.5630, 5-month low. The GBP/USD is recovering ground and currently is trading above the 1.5650 level, yet 0.65% negative on the day.

GBP/USD will face next support at 1.5630, then 1.5608 (Lower Bollinger). On the flip side, a surpass of 1.5879 (high Feb.1) would aim for 1.5889 (MA200d). “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 expert Karen Jones at Commerzbank.