GBP/USD hit a 6 week low and lost support after a series of worries hit Britain and as the US dollar strengthens across the board. Cable already started the week with a Sunday gap, falling to 1.60, but later through the Asian session, it managed to recover and trade slightly higher. When European traders returned from the weekend, the pair fell, and dropped as low as 1.5958 before recovering some of it’s losses. Why is the pound falling despite rising inflation? London riots: a huge demonstration was held in the British capital over the weekend, protesting against the austerity measures. The scene turned violent. The British government is becoming unpopular. Irish default risk: an Irish minister said he wants senior bondholders to share some losses of Irish banks. British banks have serious to exposure to Ireland, so Britain is at risk as well. The British economy is struggling: even before the austerity measures, the UK was struggling. The economy contracted in Q4, and there are fresh fears for another negative quarter. Hawkish American comments: Several members of the Federal Reserve have hinted, or more than hinted about stopping QE2 as planned. One member spoke of stopping the program earlier than expected, and another Plosser, even spoke about a rate hike. GBP/USD Lines Initial support is found at 1.5940, which was a bottom in February. Further support is at 1.5820. 1.60 now turns into resistance, and its followed by 1.6110. For more lines and events moving the pound, see the GBP/USD Forecast. Yohay Elam Yohay Elam Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts. Yohay's Google Profile View All Post By Yohay Elam Forex News Today: Daily Trading News share Read Next Dollar Slightly Stronger on Better Personal Spending Yohay Elam 12 years GBP/USD hit a 6 week low and lost support after a series of worries hit Britain and as the US dollar strengthens across the board. Cable already started the week with a Sunday gap, falling to 1.60, but later through the Asian session, it managed to recover and trade slightly higher. When European traders returned from the weekend, the pair fell, and dropped as low as 1.5958 before recovering some of it's losses. Why is the pound falling despite rising inflation? London riots: a huge demonstration was held in the British capital over the weekend, protesting against the austerity measures.… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.