GBP/USD falls further to 1.4340

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 15, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Edinburgh) - The offered tone around the sterling is now gathering steam, quickly dragging GBP/USD to fresh lows near 1.4340.

    GBP/USD in multi-year lows

    The pair has slipped to levels last seen in April 2010 around 1.4340 on increasing risk aversion in the global markets, all in response to rising jitters on China after another slump in equities.

    Dreadful start of the year for the sterling so far, losing ground almost uninterruptedly for the last two weeks. Yesterday’s BoE minutes have confirmed the ‘Old Lady’ has no rush in hiking rates, with expectations now seeing a lift-off in November 2016.

    GBP/USD key levels

    The pair is now losing 0.45% at 1.4347 and a breakdown of 1.4300 (psychological level) would expose 1.4230 (monthly low Apr.2010) and finally 1.4049 (monthly lows Jan.2010). On the flip side, the next resistance aligns at 1.4556 (downtrend from 1.5232) ahead of 1.4687 (20-day sma) and finally 1.4947 (high Dec.24).
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