GBP/USD: thin liquidity and Sterling gets battered

By FXStreet FXStreet (Guatemala) – GBP/USD is currently trading at 1.5193 with a high of 1.5311 and a low of 1.5190.

GBP/USD is testing the downside and has started to erode the 200 SMA on the hourly chart. The greenback is making some better headway as we approach the close for the week. There are mounting downside pressures while markets have been thin and the continued failures of the upside have exposed the pound to a battering which was overdue on fundamentals and a market that was too short the greenback. Next week will be critical with US October Personal Income and Spending and October Durable Goods Orders ahead of the start of December trade and jobs data.

GBP/USD levels

Technically, Karen Jones, chief analyst at Commerzbank explained that the break of the minor support line at 1.5211 will alleviate immediate upside pressure. “Below 1.5135/33 (October low) is needed to refocus attention on the downside towards 1.5020/00 and below 1.5000 will target initially the 1.4860/78.6% retracement of the move up from April. This is regarded as the last defence for the 1.4568 April low.”
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Source:: FX Street