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Brexit poll of poll triggers sell-off in GBP/USD

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Mar 31, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    GBP/USD dropped like a rock from its daily highs after latest Brexit poll of polls showed sentiment building up against EU membership.

    US data offers support

    Sterling turned lower from the high of 1.4426 levels and and fell to 1.4368 (38.2% of 1.5230-1.3835) levels, before recovering slightly to 1.4390 levels on the back of a rise in the US weekly jobless claims.

    Data released in the US showed initial jobless claims in the last week rose by 11K to a two-month high of 276K. Consequently, the Brexit related sell-off stalled. The focus now is on Fed speak and regional Fed manufacturing indices release. Volatility in the pair is likely to remain high on account of Brexit fears.

    GBP/USD Technical Levels

    The immediate hurdle is noted at 1.40 followed by a resistance at 1.4427 (daily high) and 1.4475 (inverse head and shoulder neckline). On the other hand, a break below 1.4354 (23.6% of 1.3835-1.4514) would expose 1.43 handle, which is followed by a support at 1.4252 (50% of 1.4669-1.3835).
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