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GBP/USD drops further to 1.4230

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 25, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Edinburgh) - The offered tone remains intact around the sterling at the beginning of the week, with GBP/USD now testing daily lows in the 1.4230 area.

    GBP/USD lower on risk aversion

    The pair has faded the initial stab to session highs above the 1.4300 handle in response to a wave of risk aversion triggered post-Asian close. In the meantime, spot is retreating for the first time after three consecutive sessions of gains following a brief test of multi-year lows in sub-1.4100 levels last week.

    Ahead in the week, the focus of attention will remain on Governor M.Carney’s speech on Tuesday, especially after his recent dovish appreciations, followed by UK’s GDP figures for the fourth quarter.

    GBP/USD levels to watch

    As of writing the pair is losing 0.29% at 1.4237 with the immediate support at 1.4079 (low Jan.21) followed by 1.4049 (monthly low Feb.2009) and then 1.3653 (monthly low Mar. 2009). On the other hand, a breakout of 1.4364 (high Jan.22) would open the door to 1.4454 (20-day sma) and finally 1.4844 (55-day sma).
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