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GBP/USD breaks below 1.40 as Brexit fears weigh

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 24, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    GBP/USD has broken through 1.40, taking out stop loss orders in the process and setting a new low at 1.3980 as the uncertainty over the UK referendum to remain a member of the EU continues to wreak havoc the Pound.

    In the latest YouGov poll for the UK Times, which was reported via Reuters after the NY close, the percentatge of Brittish that support the idea of an exit from the EU stood at 38% vs 37% that want to stay in the EU. As much as 25% were undecided or not planning to vote.

    According to Ani Salama, Editor at FXStreet: "Short-term technical picture remains clearly bearish as per indicators heading south below their mid-lines, but both 1 hour and 4 hours charts exhibit oversold conditions, suggesting the pound might take a breather before resuming the slide. GBP/USD needs at least to regain the 1.4200 level to ease immediate bearish pressure and increase chances of a stronger recovery. On the downside, a break below 1.4000 will fuel the fall, with 1.3850 standing as next major support area."
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