GBP/USD: bears target Feb lows on 1.38 handle

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Apr 7, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    GBP/USD is refuelling for another attempt at the downside to close the week, heading for a possible test of the 1.4000 handle to meet recent lows of 1.4004.

    GBP/USD is heavily offered on the back of Brexit fears. "we see risk that Brexit could conceivably knock GBP/USD down by around 12% from current levels," argued analysts at Rabobank.

    A Brexit would be a nightmare for the Old Lady

    At this moment, the saving grace to the pound has been the weakness in the greenback while timings of the next rate hike from the Fed has been set back by perceived global negative ramifications to the U.S. economy. However, the FOMC minutes yesterday were somewhat less dovish than expected offering the U.S. some relief.

    GBP/USD levels

    Karen Jones, chief analyst at Commerzbank explained that GBP/USD failed to maintain its breach of the 3 month resistance line last week and sold off sharply. "It is under pressure", noting the key targets of the 1.3837 29th Feb low."
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