Forex: GBP/USD hovering around 1.5500

After falling to a fresh 6-month low sub-1.5500, the GBP/USD managed to stabilize in a narrow range at the beginning of the American session, with the latest report on US jobless claims having no impact on the cross.

GBP/USD recovered slightly after hitting a low of 1.5491, but it remained capped below the 20-hour SMA. At time of writing, GBP/USD is trading around 1.5500, where it posts a 0.3% loss on the day.

"Cable has traded sideways for whole day as the bigger view remains bearish after it has broken its important support at 1.5600 on the monthly charts. On the downside it can extend its losses further towards 1.5450-400 levels in the near/medium term, also further lower levels also cannot be ruled out", said the Kshitij Consultancy Services Team. "But having said that, we need to keep in mind that it does look oversold in the near term on the short term charts and a short covering pull back towards 1.5575-5600 can be seen".