CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
☰
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
✖

GBP USD continues tumble towards 1 52

Article By: ,  Financial Analyst
July 8, 2015 3:25 PM

GBP/USD (daily chart shown below) has continued to plunge for the second consecutive day this week as the currency pair follows through on a sharp downtrend that has been in place for the past two weeks.

This short-term bearish trend has already dropped down to hit and break below its 50-day moving average, the key 1.5500 support target, as well as an uptrend line extending back to the 1.4565 multi-year low in mid-April. Currently, GBP/USD has tumbled even further to trade just slightly above its 200-day moving average.

 

While the currency pair has been a solid performer in recent months, price action in the past two weeks has been decidedly negative, mimicking the sharp pullback in the latter half of May. The current decline from June’s 1.5928 year-to-date high now threatens to give back most of the considerable gains made during the middle part of June.

With both the longer-term and short-term trends pointing to the downside, the currency pair could have further to fall on the current bearish momentum and US dollar strength.

In this event, after yesterday’s breakdown below 1.5500, the next major downside target is around the 1.5200 level, where GBP/USD bottomed out in early June. In the event of further downside on any sustained break below 1.5200 support, the next clear target resides at the 1.5000 psychological support level.

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. CFD and Forex Trading are leveraged products and your capital is at risk. They may not be suitable for everyone. Please ensure you fully understand the risks involved by reading our full risk warning.

City Index is a trading name of StoneX Financial Ltd. Head and Registered Office: 1st Floor, Moor House, 120 London Wall, London, EC2Y 5ET. StoneX Financial Ltd is a company registered in England and Wales, number: 05616586. Authorised and regulated by the Financial Conduct Authority. FCA Register Number: 446717.

City Index is a trademark of StoneX Financial Ltd.

The information on this website is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement.

© City Index 2024