FXstreet.com (Barcelona) - The Pound is going through a shocking selloff on Thursday and from 1.6380 intra-day high ahead of the European markets opening, the pair has dived below 1.6100, and the Pound hit a fresh 2-month low at 1.6065; 1.4% below its day opening level.
According to James Chen, technical analyst at FX Solutions a strong break below 1.6100 could open the doors towards 1.5800: In the case of GBP/USD, the immediate event to watch for would be a strong breakdown below 1.6100 support, in which case the 1.5800 price region would be a clear further support target to the downside. Like other major currencies against the U.S. dollar, GBP is still entrenched within an overall uptrend, but this could very well be in jeopardy on GBP/USD if the pair continues to lose ground.
Support levels, below 1.6100 lie at 1.5980 and 1.5940. On the upside, resistance levels lie at 1.6200 and above here,1.6265, (Sept 21 high) and 1.6310.