8 Mar 2016
GBP/USD extends the drop below 1.4200
The sterling is losing further altitude today, sending GBP/USD back below the 1.4200 handle, or session lows.
GBP/USD lower as risk-off intensifies
The pair lost around a cent since overnight tops near 1.4280, dragged lower in response to a pick up in the risk aversion sentiment in the global markets.
In addition, earlier comments by BoE’s Carney and Cunliffe regarding a ‘Brexit’ scenario seem to have dampened any bullish attempt in the pair, collaborating further with the daily decline.
Furthermore, absent data in the UK docket and second-tier releases in the US left spot exposed to the broader risk trends. Looking to Wednesday’s calendar, UK’s Industrial/Manufacturing Production figures will be in the limelight ahead of the NIESR GDP Estimate.
GBP/USD levels to consider
As of writing the pair is retreating 0.63% at 1.4176 and a breach of 1.4079 (low Jan.21) would open the door to 1.4028 (23.6% Fibo of 1.4670-1.3833) and then 1.3836 (multi-year low Feb.29). On the other hand, the next hurdle lines up at 1.4348 (61.8% Fibo of 1.4670-1.3833) followed by 1.4387 (55-day sma) and finally 1.4410 (high Feb.19).
GBP/USD lower as risk-off intensifies
The pair lost around a cent since overnight tops near 1.4280, dragged lower in response to a pick up in the risk aversion sentiment in the global markets.
In addition, earlier comments by BoE’s Carney and Cunliffe regarding a ‘Brexit’ scenario seem to have dampened any bullish attempt in the pair, collaborating further with the daily decline.
Furthermore, absent data in the UK docket and second-tier releases in the US left spot exposed to the broader risk trends. Looking to Wednesday’s calendar, UK’s Industrial/Manufacturing Production figures will be in the limelight ahead of the NIESR GDP Estimate.
GBP/USD levels to consider
As of writing the pair is retreating 0.63% at 1.4176 and a breach of 1.4079 (low Jan.21) would open the door to 1.4028 (23.6% Fibo of 1.4670-1.3833) and then 1.3836 (multi-year low Feb.29). On the other hand, the next hurdle lines up at 1.4348 (61.8% Fibo of 1.4670-1.3833) followed by 1.4387 (55-day sma) and finally 1.4410 (high Feb.19).