GBP/USD in the red, lowest since March 2009

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 29, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    The GBP bears tighten their grip on the GBP/USD pair in the mid-European session, knocking-off the major to fresh seven-year lows below 1.3850.

    GBP/USD sold-off into risk-off moods

    The GBP/USD pair trades 0.19% lower at 1.3853, hovering within a striking distance of multi-year lows printed at 1.3841 over the last hour. The cable keeps losses and makes minor recovery-attempt from lows amid the European stocks sell-off. The Euro Stoxx 50 drops -1.06%, while the DAX sinks -1.60%.

    Moreover, subdued oil prices are also weighing on London stocks and hence, collaborate to the downside in the major. The UK’s FTSE slips -0.70% to trade around 6,050 levels. Meanwhile, the GBP traders completely ignored the better than expected UK mortgage approvals data, which hit a 2-year high, as the risk-off sentiment continues to dominate markets.

    Markets now await the US economic data, which includes the pending home sales and Chicago PMI, for fresh cues on the cable.

    GBP/USD Levels to consider

    The pair has an immediate resistance at 1.3896/1.3900 (5-DMA/ round number), above which 1.3927/56 (1h 50-SMA/ 1h 100-SMA) would be tested. On the flip side, support is seen at 1.3800-1.3750 (March 2009 levels).
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