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GBP/USD: bulls coming up for air onto the 1.55 handle

FXStreet (Guatemala) - GBP/USD is currently trading on the bid testing the 1.55 handle with a high of 1.5569 and a low of 1.5479.

GBP, like UK's PM, David Cameron, lost some street-cred recently. The pair gave up the 1.55 handle on broad dollar strength and bulls are scrambling to guard the vicinity of the halfway point of the 1.54 handle where the 200 SMA sits at 1.5494.

"Although BoE Governor has made it clear that the next move in UK rates is likely to be to a tightening, he is sitting on the fence in terms of the timing by repeating the view that the factors that will dictate the policy decision will come into sharper focus at the end of 2015," - noted by analysts at Rabobank.

GBP/USD downside risks

Technically, on further slippage and a break below the 1.54 handle, Karen Jones, chief analyst at Commerzbank explained that we should see a slide back to key nearby support offered by the 200 day ma and last weeks low at 1.5345/29. "Below 1.5325 will target 1.5172 the June low. Failure here will trigger losses to 1.5088, the 61.8% retracement then 1.4895, the 78.6% retracement."

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