Wednesday, 8 June 2011

Forex: GBP/USD bounces and challenges 1.6400

FXstreet.com (Córdoba) - GBP/USD has moved north after bottoming out at 1.6347 earlier, as the euro weakened allowing the Sterling to erase losses against the hegemonic currency. EUR/GBP fell toward a 2-day low at 0.8892 after reaching a 1-month peak at 0.8974.

Cable was beaten earlier as Moody's warned the UK could lose its "AAA" rating on the back of its bleak growth perspectives.

However, GBP/USD has recovered near 40 pips from lows and is challenging the 1.6400 mark. The high has been 1.6407 so far. At time of writing, GBP/USD is trading at the 1.6390/1.6400 area, recording a 0.25% loss on the day, while EUR/GBP quotes at daily lows around 0.8900.

Valeria Bednarik, chief analyst at FXstreet.com sees next resistance levels for GBP/USD at 1.6400, 1.6440 and 1.6470, while she locates next support levels at 1.6344, 1.6310 and 1.6250.

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