GBP/USD – Bears are Back, Drops Below 1.41

GBP/USD – Bears are Back, Drops Below 1.41

7 April 2016, 10:22
Roberto Jacobs

GBP/USD – Bears are Back, Drops Below 1.41

GBP bears made their presence felt once again in early Europe, pushing GBP/USD to a session low of 1.4048 levels.

Rejected at hourly 50-MA

Spot made failed attempts to break above hourly 50-MA, opening doors for a fresh sell-off in Europe. Once again the move lacked a fundamental trigger, which highlights the bearish mood surrounding currency.

Brexit is likely to keep the currency pair offered, as pointed out by FXstreet analyst Ross Burland. Ahead in the day, US data sets – weekly initial jobless claims and continuing claims – may influence the pair.

GBP/USD Technical Levels

The pair currently trades around 1.4080. The immediate hurdle is noted at 1.4140 (hourly 50-MA), above which the spot could target 1.4200 (hourly 100-MA). A break higher would expose hourly 200-MA at 1.4257. Conversely, acceptance below 1.4079 (Jan 21 low) could send the pair back to 1.4032 (23.6% of 1.4669-1.3835). Next major support is seen at 1.43.

(Market News Provided by FXstreet)

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