GBP USD Has Room to Fall Further

The GBP USD continues to feel downside pressure following yesterday’sbearish comments by Bank of England Governor Mervyn King.  In aninterview, King stated that he favored a weaker currency to drum upU.K. exports.

Daily Analysis

GBP USD

The GBP USD continues to feel downside pressure following yesterday’s bearish comments by Bank of England Governor Mervyn King.  In an interview, King stated that he favored a weaker currency to drum up U.K. exports.

The British Pound has fallen considerably since the comments and has broken minor support prices along the way.  The next minor level is the June bottom at 1.5801. 

The bigger picture suggest further downside movement is likely.  The main range is 1.3501 to 1.7042.  The weekly chart suggests that a correction back to 1.5271 to 1.4854 is likely.