Forex: GBP/USD: Pound drops back to week lows at 1.6115 on weak stock markets
The Pound's recovery seen during Asian session has been short lived as the pair turned down after having reached 1.6190 to test levels at 1.6115 intra-week low on the back of negative opening on European markets.
So far support level at 1.6115 remains intact, as the Pound trades around 1.6135. In case of further decline, next support levels lie at 1.6035 (Jul 14 low) and 1.5940. On the upside , initial resistance area could be at 1.6185, previous intra-week low and above here, 1.6225 and 1.6280.
According to Stoyan Mihaylov, technical analyst at Deltastock.com, the Pound is on a downtrend, heading to levels below 1.60: "As expected, the pair peaked below 1.6402 dynamic resistance and a sell-off followed, all the way down to 1.6111. Current rebound is corrective in nature and we expect it to be limited below 1.6254, before next leg downwards, to 1.5980 major target."
