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Forex - GBP/USD hits 4-day low amid increased risk aversion

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Forex Pros - The pound fell to a four-day low against the U.S. dollar on Tuesday, as risk appetite soured amid fears over reprisals from Al Qaeda after this week's killing of Osama bin Laden.

GBP/USD hit 1.6566 during European morning trade, the pair's lowest since April 27; the pair subsequently consolidated at 1.6568, shedding 0.50%.

Cable was likely to find support at 1.6434, the low of April 27 and resistance at 1.6738, Monday's high and an almost 17-month high.

Earlier in the day, the U.S. and Australia increased security at their embassies, while Interpol told its 188 member countries to be on "full alert" following the death of the al Qaeda leader in Pakistan.

Meanwhile, on Monday Bank of England Governor Mervyn King said high debt levels pose "massive" economic challenges that would be exacerbated by higher interest rates.

The pound was also down against the euro, with EUR/GBP rising 0.14% to hit 0.8916.

Later in the day, the U.K. was to publish official data on manufacturing activity, while the U.S. was to release government data on factory orders.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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