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GBP/USD extends the drop below 1.4200

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Mar 8, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    The sterling is losing further altitude today, sending GBP/USD back below the 1.4200 handle, or session lows.

    GBP/USD lower as risk-off intensifies

    The pair lost around a cent since overnight tops near 1.4280, dragged lower in response to a pick up in the risk aversion sentiment in the global markets.

    In addition, earlier comments by BoE’s Carney and Cunliffe regarding a ‘Brexit’ scenario seem to have dampened any bullish attempt in the pair, collaborating further with the daily decline.

    Furthermore, absent data in the UK docket and second-tier releases in the US left spot exposed to the broader risk trends. Looking to Wednesday’s calendar, UK’s Industrial/Manufacturing Production figures will be in the limelight ahead of the NIESR GDP Estimate.

    GBP/USD levels to consider

    As of writing the pair is retreating 0.63% at 1.4176 and a breach of 1.4079 (low Jan.21) would open the door to 1.4028 (23.6% Fibo of 1.4670-1.3833) and then 1.3836 (multi-year low Feb.29). On the other hand, the next hurdle lines up at 1.4348 (61.8% Fibo of 1.4670-1.3833) followed by 1.4387 (55-day sma) and finally 1.4410 (high Feb.19).
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