GBP/USD: Bears Relentless, Cracks 1.4100

GBP/USD: Bears Relentless, Cracks 1.4100

6 April 2016, 11:13
Roberto Jacobs

GBP/USD: Bears Relentless, Cracks 1.4100

The bears continue to extend their control on the GPB/USD pair in the European session, hammering the prices below 1.41 barrier.

GBP/USD drops below all major DMAs

The GBP/USD pair drops -0.42% to 1.4100, hovering close to fresh session lows posted at 1.4095 some minutes ago. The cable extends its downward spiral into a second day today and came under massive selling pressure over the last hour as the rising demand for the safe-haven yen almost killed the bids for higher-yielding currencies such as the GBP.

Moreover, the GBP/USD pair remains heavily offered also as the US dollar picked-up significant strength against its major rivals amid improving risk-appetite on the back of rebounding oil prices. Amid a data-empty UK docket, the sentiment around the oil and stock markets will continue to drive the major, while the FOMC minutes due later in the NA session will also have significant impact on the prices.

GBP/USD Levels to consider

The pair has an immediate resistance at 1.4186/94 (daily pivot/ 5-DMA), above which 1.4250 (psychological levels) would be tested. On the flip side, support is seen at 1.4055/51 (Mar 24 & 16 Low) below that at 1.4000 (key support).

(Market News Provided by FXstreet)

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