The GBP Falls Sharply

Moody’s concerns about the British debt rating added more pressure on the already troubled GBP. The GBP/USD pair fell from 1.52 all the way to 1.5025 in three hours, taking out all of the resistances and stop losses along the way. It seems to have found a bottom around 1.5030 and now looks to grind back some of its losses, trading around 1.5050.

Besides tomorrow’s FOMC meeting, there is an extremely important unemployment report from London on Wednesday, which could either sink the GBP back to its lows, or give some room to breathe, at least temporarily. Given the recent negative outlook of the British economy, there is little reason for an optimistic unemployment report, therefore the 1.4850 lows on the daily charts look very vulnerable if the report comes worse than expected.