GBP/USD – Bear Grip Strengthens, Slides Further
Sterling bears continue their relentless march, pushing GBP/USD to a fresh daily low of 1.4113 levels.
Rejected at 23.6% Fibo
A minor attempt by bulls to regain control of the pair was thwarted around 1.4165 (23.6% of 1.5230-1.3835) following selling resumed. The slide may be in response to Brexit fears. FT’s poll trackers says ‘stay’ vote stands at 45%, while ‘leave’ vote is at 42%.
This means nothing much has changed significantly since ‘Leave’ vote has stayed around 40 since last few polls. Nevertheless, Brexit related news flow could be behind the drop in Sterling, given the value of Sterling hedge is now at its highest since 2008 recession.
GBP/USD Technical Levels
The immediate hurdle is noted at 1.4165 (23.6% of 1.5230-1.3835), above which the spot could target 1.42. A break higher would expose 1.4252 (50% of 1.4669-1.3835). On the other hand, a break below 1.41 would expose 1.4079 (Jan 21 low) under which losses could be extended to 1.4032 (23.6% of 1.4669-1.3835).
(Market News Provided by FXstreet)