GBP/USD reverses and drops to fresh monthly lows

By FXStreet FXStreet (Córdoba) – GBP/USD resumed the decline after being unable to hold rise back above 1.5300 and is now approaching 1.5200 as the US dollar continues to rally against European currencies.

Cable lost 50 pips during the last hour and bottomed at 1.5215, hitting the lowest level since early June. Despite falling versus the US dollar, the pound is the best performer among European currencies and is rising versus the Swiss franc and the euro.

GBP/USD decline continues

The pound is falling for the eight day in a row against the US dollar and continues to look for support. To the downside, the levels to watch are 1.5200 and 1.5160 (June lows). To the upside, resistance levels could be located at 1.5250, 1.5290 (European session high) and 1.5325 (Sept 2 high).

The bearish momentum persists despite oversold reading in some technical indicators. If the pair manages to rise above the 1.5330 – 1.5360 area it would be breaking short term downtrend lines and rising above important moving averages, gaining support.
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Source:: FX Street