GBP/USD drops further, 1.4150 on sight

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 22, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    The sterling is sharply lower across the board today, with GBP/USD now losing nearly 1.5% around the mid-1.4100s.

    GBP/USD much lower on ‘Brexit’

    The pair has intensified its decline, reaching 4-week lows in the 1.4150/40 band, following the decision by London’s mayor Boris Johnson to support a campaign to leave the European Union.

    Comments by B.Johnson have also sent the sterling to the biggest drop since 2010, losing nearly 3 cents since Friday’s tops above the 1.4400 handle.

    GBP/USD levels to consider

    As of writing the pair is retreating 1.63% at 1.4167 and a break below 1.4147 (low Jan.29) would expose 1.4100 (psychological level) and then 1.4079 (2016 low Jan.21). On the upside, the next resistance lines up at 1.4400 (20-day sma) followed by 1.4522 (38.2% Fibo of 1.5240-1.4079) and finally 1.4579 (55-day sma).
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