GBP/USD weakness persists, slides below 1.42

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Mar 23, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    Sterling is once again being offered in early Europe leading to a break in the GBP/USD pair below 1.42 levels on increased Brexit fears.

    Offered at 1.4227

    The spot turned lower from the Asian session high of 1.4227 and now trades around the session low of 1.4180 levels. Investors believe the terrorist attack in Brussels my force Britons to actively consider voting in favor Brexit.

    Political developments over the weekend also rattled GBP bulls. Most investment banks are now betting on a sharp sell-off to 1.36-1.35 levels in a run up to June 23 referendum. With no major data due today, the spot at the mercy of Brexit fears and overall market sentiment.

    GBP/USD Technical Levels

    A breakdown of immediate support at 1.4138 (Mar 15 low) would expose next support at 1.4117 (Mar 10 low), which if breached would mark short-term bullish invalidation and shift risk in favor of a drop to 1.4079 (Jan 21 low). On the other hand, immediate hurdle at 1.42 if breached could see the spot target 1.4277 (50-DMA) and 1.43 levels.
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