GBP/USD extends decline, tests 1.5500

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GBP/USD extends decline, tests 1.5500

FITITOL--> FXstreet.com (Córdoba) - The cable extended losses against the dollar as risk aversion intensified following the Wall Street opening, with GBP/USD breaking below intraday lows and falling toward the 1.5500 mark.

After dropping through the 1.5525 zone, the sterling accelerated to the downside, hitting its lowest level in nearly 2 weeks at 1.5500, where some buyers helped to contain the slide. At time of writing, the cross is trading barely above recent lows, recording a 0.4% decline on the day.

From a technical view, Valeria Bednarik, chief analyst at FXstreet.com, notes that 4 hours chart shows an increasing bearish momentum, with indicators moving away from their midlines, "while 20 SMA slowly gains bearish slope above current price".

Below the 1.5505/00 zone, Bednarik locates immediate supports at 1.5470 and 1.5440, while she places resistances at 1.5520, 1.5550 and 1.5590.