FXstreet.com (Córdoba) - The Pound failed to hold above 1.6500 against the Dollar and fell to 1.6470 after peaking at 1.6533. Currently trades at 1.6480/85, 1.10% below today's opening price. To the downside the next support lies at 1.6450 and below at 1.6400/05 (Nov 4 lows). The pair is losing most of the gains achieved during the American session.
Michael J. Malpede, analyst at Easy Forex comments on Cable weakness: GBP traded sharply lower pressured new concerns about the UK budget outlook and sell stops triggered on the break of 1.6500. Officials at the Confederation of British Industries (CBI) are calling on the UK government take aggressive steps to reduce the budget deficit. Regarding the technical outlook he affirms: GBP is negative as GBP trades below 1.6500. Expect near-term support at 1.6400 the November 3rd low with resistance at 1.6725 for November 19th high.