GBP/USD cuts through 50% Fibo support

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Mar 23, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    Selling in GBP/USD gathered pace, once again due to Brexit fears, pushing the pair below 1.4175 (50% of 1.3835-1.4515).

    Drops for fourth consecutive day

    Cable is trading down for the fourth consecutive day as increased odds of Brexit continue to scare investors out of Sterling positions. Spot began the losing streak after repeatedly failing to chew through offers around 1.45 handle.

    The data calendar in the UK and US is empty; hence Brexit fears may continue to push Cable to fresh session lows and towards rising trend line support around 1.4140 levels.

    GBP/USD Technical Levels

    Cable printed a low of 1.4163 and now trades around 1.4175 (50% of 1.3835-1.4515) levels. A convincing break above 1.4175 would expose 1.42 handle, above which the spit could target 1.4228 (daily high). On the flip side, a break below at 1.4138 (Mar 15 low) would expose next support at 1.4117 (Mar 10 low), which if breached would mark short-term bullish invalidation and shift risk in favor of a drop to 1.4079 (Jan 21 low).
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