Forex: GBP/USD falls below 1.5200 after UK downgrading

The GBP/USD closed Friday below the 1.5200 frontier and around daily lows at 1.5160 following the Moody's decision to cut Britain government rating to Aa1 from Aaa. The agency has put now the outlook as stable.

Moody's considers that the "continuing weakness in the UK's medium-term growth outlook with a period of sluggish growth," will be extended into the second half of the decade. The agency also downgraded the Bank of England rate to Aa1 from Aaa.

The GBP/USD declined around 100 pips in just a few minutes from 1.5255 to break down the 1.5200 level and reach intra-day lows at 1.5160. The GBP/JPY collapsed from 142.50 to 141.50 in its way to 1-month lows around 141.30.