FXstreet.com (Barcelona) - After trading on a narrow range between 1.6440 and 1.6460 during the Asian session, the GBP/USD has fallen quickly in the last hour after Moody's investors has said that UK and US had resilient AAA ratings due to a harder impact of the financial crisis than other countries like Canada, Germany and France.
GBP/USD has fallen 105 pips in the last hour from 1.6460 to hit intra-day low at 1.6355. Currently the pair is trading around 1.6370/80, 0.45% below opening price action at 1.6445.
According to Abhishek Goenka, analyst at India Forex Advisors, the Sterling is bearish: The GBPUSD made indecisive movement yesterday, formed a Doji on daily chart and slipped below the trendline support and bottomed at 1.6312 but further bearish pressure was rejected as the pair closed much higher at 1.6453 and now back above the trendline support. Shorts can be initiated at 1.6550 levels for target of 200 pips.(GBPUSD - 1.6443) Bearish.
Carol Harmer, analyst at CharmerCharts.com, comments: Cable looking under pressure this morning with a loss f 1.6380 seeing sellers take the reins and drive this lower for 1.6317/13 initially, with greater potential for 1.6295/85. Here sellers should look to cover shorts. Buyers are expected at these lower levels and a tug of war will ensue. Buyers may well win the first round here and drive this back towards the break point of 1.6380.