GBP/USD breaks 1.5400 support

FXstreet.com (Córdoba) - The GBP/USD broke below the 1.5400 mark and printed fresh lows as stocks lose steam and the greenback extends gains across the board.

GBP/USD falls below 50-day SMA

GBP/USD has lost over 160 pips from daily highs and dropped to a fresh 2-week low of 1.5371, having pierced below the 50-day SMA. At time of writing, GBP/USD is trading around 1.5375/80, where it records a 0.8% daily loss, following a modest bounce on Thursday.

Next supports are now seen at 1.5365 (200 SMA in 4-hour chart) and 1.5318 (100-day SMA), while resistances could be found at 1.5480 (20-hour SMA) and 1.5530 (daily high).

Jun 21, 2013

Flash: Sharp correction to continue? – Goldman Sachs

According to the Economics Research Team at Goldman Sachs, “The discussion about Fed tapering has triggered a sharp correction in bond markets and equities alike as investors worry about the impact of a withdrawal of QE on the sustainability of growth as well as assets that may be vulnerable to a rise in US yields.”

Flash: UK GDP 2013 forecast climbs to +1.1% – RBS

According to the RBS Research Team, “We have revised up our UK GDP forecast for 2013 to 1.1% from 0.8% – with modest upside risks around this central projection.”