GBP/USD drops to fresh daily lows

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:
    European desks offered Sterling, pushing the GBP/USD pair to a fresh daily low of 1.4206 on increased odds of Brexit.

    FTSE futures still positive

    Disconnect between Sterling and FTSE is still intact. Brexit fears heightened after London’s Mayor joined the ‘leave group’ and shall now urge Britons to vote in favor of Brexit. That seems to have rattled currency markets, however, the FTSE futures are still pointing to a positive open.

    The spot remains at the mercy of the Brexit related news flow. It remains to be seen if the Sterling remains weak despite positive action in the equity futures.

    GBP/USD Technical Levels

    The immediate resistance is seen at 1.4243 (Asian session low), above which the spot could target 1.4277 (hourly 50-MA). On the other hand, a breakdown of immediate support at 1.42 would open doors for a slide to 1.4149 (Jan 29 low).
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