Forex: GBP/USD extends decline and trades below 1.5850

By IBTimes Staff Reporter | December 30 2009 6:50 AM

FXstreet.com (Barcelona) - The Sterling has continued trading lower against the Greenback throughout today's European session and after falling around 70 pips the GBP/USD is trading below the 1.5850 level, reaching fresh 2-month lows close to 1.5840.

Sponsorship Link

Currently the pair is trading around 1.5835/45, 0.45% below today's opening price action at 1.5900.

Ian Coleman, analyst at Turtle Index, comments: We will start with GBPUSD. We got our Head and Shoulders to play out. Although we have NO signs of a reversal from this area there are two key points that need to be noted. An ABC formation will take us to 15849. If we reach 15778 that will be 261.8% and very close the previous low. We still have full sell signals but I would be very wary around this area.

The Varengold Bank Research Team affirms: Except one time the GBP has been trading in a bearish trend-channel since November. After the currency pair fell below its first pivot support point last week the bulls tried to recover but failed yesterday at the pivot point and weakened subsequent to the first pivot support point of this week. The DMI may indicate decreasing bearish force, but if the pivot support will also break the GBP could fall to the lower trend-channel line.

.