GBP/USD plunges on BoE’s King speech (Barcelona) - As the BoE says the UK financial stability has deteriorated with uncertainty and tighter credit conditions, Governor King called for a temporary raise of banking capital levels while wanting a change of culture and structure in UK banking.

After having reached as high as 1.5679, the GBP/USD has fallen down to 1.5574 session low and is still trading below 1.5600 level.

“Strong barrier at 1.5650, previous highs / main bear trendline off 1.6300, comes under pressure, with break here to open way for stronger recovery and possible attack at 1.5700 and 1.5745, 200 day MA and key short-term static barrier at 1.5776, 20 June peak”, wrote Windsor Brokers analyst Slobodan Drvenica.