The GBP bears seem to loosen the grip following the risk-on rally in the European stocks, only to find fresh offers near 1.4220 region and sent the pair back below 1.42 handle.
Brexit woes loom
The GBP/USD pair sinks 1.51% at 1.4186, fading the recovery at 1.4220 levels. The cable met fresh sellers above 1.42 handle and now dives deeper in the red in a bid to retest new four-week lows reached at 1.4176 in the last hour.
The pound attempted a minor-recovery against the greenback shortly after the European open, although lost strength and took another beating as the European traders react negatively to the weekend’s news that London mayor Boris Johnson joined the Leave camp for Britain’s EU-membership.
Markets now await the CBI industrial orders expectations print as the UK docket remains almost data-empty. In the meantime, the Brexit talks will continue to dominate the sentiment around the GBP.
GBP/USD Levels to consider
The pair has an immediate resistance at 1.4297/1.4300 (5-DMA/ round number), above which 1.4383/1.4400 (10-DMA/ round number) would be tested. On the flip side, support is seen at 1.4150/47 (psychological levels/ Jan 29 Low) below which it could extend losses to towards 1.4079 (Jan Low).
