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Forex: GBP/USD recovers from lows, around 1.5470

After dipping to 7-month lows in sub 1.5440 levels, the sterling has well managed to regain ground to the area around 1.5510, although the bull attempt died off soon after dragging the cross back to the actual region around 1.5470/75

“With a flat-lining economy and the looming spectre of the UK losing its AAA credit rating, investors are likely to continue short selling the increasingly unpopular sterling. Coupled with Martin Weale’s comments over the weekend that the pound may need to weaken even further to help rebalance the UK economy, it’s no wonder that the pound is struggling and speculators are ramping up their short positions”, commented Phil McHugh, Senior Analyst at Currencies Direct.

At the moment the cross is losing 0.22% at 1.5470
Next support levels align at 1.5414 (low Jul.13) ahead of 1.5393 (low Jul.12) and finally 1.5375 (low Jun.6).
On the upside, a break above 1.5544 (high Feb.140 ahead of 1.5550 (high Feb.15) en route to 1.5614 (MA10d).

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