FXstreet.com (Córdoba) - Cable weakened in the last hour and tumbled against the Dollar. GBP/USD broke below 1.6500 and fell to 1.6435 which now holds as a key support. The next one lies at 1.6400 and below at 1.6360. Current price at 1.6448/51 is 0.20% below today's opening price.
The FastBrokers Research Team afirms: The BoE's (Bank of England) relentless favoritism of liquidity worries investors that Britain's economy may not be on as solid of footing as we are led to believe by the performance of econ data and equities. King's dovish attitude is having its intended consequences, holding down the Pound as the Dollar depreciates heavily across the board and gold climbs towards 2008 highs. Therefore, even if current trends continue, the GBP/USD may only participate half-heartedly since the currency pair has downward inclinations. We would not be surprised to see the GBP/USD experience further downward pressure over the near-term once investors take profits from risk-oriented investments.