23 Mar 2015
GBP/USD slides on election uncertainty
FXStreet (Mumbai) - The GBP/USD pair weakened on Monday after the UK Confederation of British Industry (CBI) warned the negative effects of the “power vacuum” post election results.
GBP/USD: Drops below 50% Fib retracement
The election uncertainty pushed the pair well below the 50% fib retracement level (of 1.4633-1.5122) located at 1.4877. The UK CBI warned today that the economy cannot afford a power vacuum that delays urgent policy decisions and unsettles potential Investors. Moreover, the election uncertainty has also weakened the UK gilt yields.
Meanwhile, James Bullard, president of the Federal Reserve St. Louis., comments that Fed risk falling behind the curve also weighed over the British Pound.
GBP/USD Technical Levels
The pair currently trades at 1.4847. The immediate resistance is seen at 1.4877, above which gains could be extended to 1.49 levels. On the flip side, a break below 1.4819, could push the pair down to 1.4768 levels.
GBP/USD: Drops below 50% Fib retracement
The election uncertainty pushed the pair well below the 50% fib retracement level (of 1.4633-1.5122) located at 1.4877. The UK CBI warned today that the economy cannot afford a power vacuum that delays urgent policy decisions and unsettles potential Investors. Moreover, the election uncertainty has also weakened the UK gilt yields.
Meanwhile, James Bullard, president of the Federal Reserve St. Louis., comments that Fed risk falling behind the curve also weighed over the British Pound.
GBP/USD Technical Levels
The pair currently trades at 1.4847. The immediate resistance is seen at 1.4877, above which gains could be extended to 1.49 levels. On the flip side, a break below 1.4819, could push the pair down to 1.4768 levels.