GBP/USD breaks below 1.41

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 21, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - The GBP/USD has finally dropped below 1.41 levels after repeatedly failing to take out the hourly 50-MA in the last 24 hours.

    Pound offered on Brexit fears

    The latest drop in being blamed on Brexit fears. The selling gathered pace as the UK PM Cameron is expected to throw light on Brexit issue at his Davos speech. However, Cameron expected to outline the risks of Brexit.

    Hence, the fall indicates the markets and PM Cameron may not be on the same page. Ahead of Cameron’s speech at Davos, the pair may be influenced by the action in the EUR/GBP cross after the ECB rate decision.

    GBP/USD Technical Levels

    The immediate support is seen at 1.4052 (Feb 2009 low), under which the pair could drop to 1.40 handle. On the higher side, a major resistance is seen at the hourly 50-MA at 1.4172. A break above the same could see the pair revisit 1.42 handle.
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