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GBP/USD slides as Brexit gains the upperhand

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

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    Increased demand for USD in early Europe and reports of Brexit campaign gaining traction pushed the GBP/USD pair down to 1.4240 levels.

    Eyes trend line support

    The pair is now eyeing trend line support at 1.4228 levels. The offered tone around GBP strengthened after a latest poll by UK’s Telegraph showed the Leave campaign would win on 52% of the vote, with remain trailing on 45%.

    Meanwhile, European desks are also bidding the dollar as most expect the Fed to come out slightly less dovish than what was expected a few weeks back. Ahead in the day, US advance retail sales data may add/subtract to hawkish expectations surrounding tomorrow’s FOMC rate decision.

    GBP/USD Technical Levels

    A breakdown of immediate support at 1.4228 (trend line support) would expose 1.42 (psychological figure) and 1.4164 (23.6% of 1.5230-1.3835). On the other side, resistance is seen at 1.4303. A violation there would open doors for 1.4368 (38.2% of 1.5230-1.3835) and 1.4436 (Friday’s high).
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