GBP/USD hits fresh daily lows under 1.5200

By FXStreet FXStreet (Córdoba) – GBP/USD reversed and turned to the downside. Cable fell from 1-week highs at 1.5263 to 1.5186 hitting a fresh daily low. Currently it trades around 1.5200/10, marginally below yesterday’s closing price but posting weekly gain of more than 150 pips.

Despite losing daily gains in a few minutes against the US dollar, the pound rose further versus its European rivals: EUR/GBP dropped back below 0.7050 and GBP/CHF climbed on top of 1.5350.

GBP/USD up for the week

The pound is about to end the week higher versus the US dollar and recovering after posting last Friday the lowest weekly close since April. Despite the recovery the short term outlook continues to favor the USD from a technical perspective.

But if the pair manages to end the week above 1.5170, a level that was a key support, Greenback could lose strength. But the dominant trend remains bearish.

From a fundamental perspective, the difference between monetary policy expectations also favors the US dollar but it could be already discounted in the price. As the Federal Reserve is getting ready for a rate hike in December or during the first quarter of 2016, the Bank of England, pushed away …read more

Source:: FX Street