Forex: GBP/USD: Pound dips below 1.6000

By IBTimes Staff Reporter | December 22 2009 12:01 PM

FXstreet.com (Córdoba) - The Dollar extended its gains across the board in the last hours. GBP/USD tumbled below 1.6000 and fell to 1.5918, the lowest price in 9 weeks. Form there the pair rebounded and rose to 1.5955. Currently trades at 1.5940/45, 0.58% below today's opening price. On the downside, immediate support lies at 1.5880 and 1.5860.

Sponsorship Link

The FastBrokers Research Team comments: Cable's large pullback this month has sent the currency pair below some key technical levels. Hence, it's possible the Cable could be entering a more protracted downturn. (…) the fact we are now using March lows, or the 1.40 area, to create uptrend lines gives investors an idea of the extent of the damage inflicted by the Cable's December pullback. Meanwhile, it will be interesting to see if the Cable can stabilize today and stick around the psychological 1.60 level. If not, the Cable does have some technical supports in the form of September and October lows.

.