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GBP/USD extends decline below 1.6150, affected by Draghi

FXStreet (San Francisco) - The Sterling i accelerating losses versus the US Dollar, dragged by the Euro bearishness amid Draghi's hint that ECB is "ready to alter size and/or composition of unconventional interventions as required."

The GBP/USD broke below 1.6150 after extending 1.6228 rejection and now it is pricing around 1.6120 at 51-hour MA level. Currently, GBP/USD is trading at 1.6133, down 0.21% on the day, having posted a daily high at 1.6228 and low at 1.6120.

The FXStreet OB/OS Index is reflecting neutral hourly conditions, while the FXStreet Trend Index is slightly bearish.

GBP/USD sentiment

Regarding Draghi, Jamie Coleman comments that "he's dovish, but we already knew that." Mario Draghi "Will still struggle to get German and Austrian buy-in for QE. Legal challenges to ABS buying are already being threatened. QE will surely bring more."

In this framework, supports are at 1.6120, 1.6100 and 1.6050. On the upside, resistances are at 1.6150, 1.6200 and 1.6230.

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