GBP/USD is negative territory, eyeing lower lows towards 1.4083/05 area

GBP/USD took a big hit at the end of trade last week on the back of polls favouring the leave campaign and investors getting short the closer we get towards the 23rd June referendum. 

ORB Independent Brexit poll shows leave vote ahead, GBP/USD slumps

GBP/USD hit fresh 7-week lows last Friday on the back of those polls and met 1.4178 the low before making slight recovery on to the 1.42 handle having dropped from the region of 1.4450 and sliding from previous intra session highs of 1.4659 (6th June).

GBPUSD inter-markets: Gilts forcing the downside

Sterling is opening the week in the low 1.42's, unable to attract a lifeline from potential tempted bulls with the price trading at the lowest levels since late April's business. However, if that is telling, then there is more downside to come.  As noted by analysts at Brown Brothers Harriman,  "Sterling has not performed as poorly as one would have imagined. "Over the past two months, sterling is up 0.6%."  Market themes centralised on Brexit and weak greenback - BBH

The week ahead gets busy with UK and US retail sales, UK PPI, BoE interest rate decision, the Fed, US CPI's and the list goes on.

GBP/USD levels

GBP/USD will be with a negative bias below the 1.4297 2 month uptrend. The next targets are 1.4083/05 area (January and April lows). Ona  recovery, the 100 dma is located at 1.4353, the 20 dma is at 1.4506 and close to the 1.4515 (March high) ahead of 1.4665 (February high).