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GBP/USD sell-off extends as risk-off intensifies, 1.42 eyed

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

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    A renewed spurt of selling interest grips the GBP post-European open, knocking-off GBP/USD closer towards 1.42 handle.

    GBP/USD finds fresh offers ahead of 10-DMA

    The GBP/USD pair drops -0.54% to fresh three-day lows of 1.4223, heading for a test of 1.42 barrier. The cable accelerated to the downside as the persisting risk-off moods heightened after the European stocks joined the global sell-off amid escalating global growth concerns and cautious sentiment ahead of the Fed decision.

    In addition, Brexit concerns were scaled up after the UK’s Telegraph revealed that the Leave camp sees 52% of the vote, while the rest stand at 45%. Going forward, the major is expected to remain pressured as the US dollar is expected to benefit from the hawkish expectations from the Fed outcome due to be announced tomorrow. While the US retail sales and PPI data will also have some bearing on the cable.

    GBP/USD Levels to consider

    The pair has an immediate resistance at 1.4268/69 (10-DMA/1h 10-SMA), above which 1.4292/1.4300 (50-DMA/ round number) would be tested. On the flip side, support is seen at 1.4200 (round number), below that at 1.4174/57 (Mar 9 Low/ 20-DMA).
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