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GBP/USD: Brexit driven sell-off stalled at 38.2% Fibo

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Mar 15, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    The Brexit driven sell-off in the GBP/USD appears to have stalled around 1.4154 (38.2% of 1.4669-1.3835) ahead of the US advance retail sales data release.

    Awaits US data

    Traders now await US data release, which is expected to show retail sales dropped in February, following sharp rise seen in January.

    British Pound faced a double whammy of resurgence of Brexit fears and oil-driven risk-off in the European equities. However, major part of the sell-off was due to UK’s telegraph poll, which showed Britons are likely to vote in favor of Brexit at June 23 meeting.

    GBP/USD Technical Levels

    The spot currently trades around 1.4170; down almost 1% on the day. A breakdown of immediate support at 1.4154 (38.2% of 1.4669-1.3835) would expose 1.41 handle, which is followed by a major support at 1.4079 (Jan 21 low). On the other hand, resistance is seen at 1.4228 (trend line resistance). A violation there would shift risk in favor of a rise to 1.4267 (5-DMA) and 1.4301 (50-DMA).
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