GBP/USD: Bears Target Feb Lows on 1.38 Handle
is refuelling for another attempt at the downside to close the week,
heading for a possible test of the 1.4000 handle to meet recent lows of
GBP/USD is heavily offered on the back of Brexit fears. "we see risk that Brexit could conceivably knock GBP/USD down by around 12% from current levels," argued analysts at Rabobank.
A Brexit would be a nightmare for the Old Lady
At this moment, the saving grace to the pound has been the weakness in the greenback while timings of the next rate hike from the Fed has been set back by perceived global negative ramifications to the U.S. economy. However, the FOMC minutes yesterday were somewhat less dovish than expected offering the U.S. some relief.
Jones, chief analyst at Commerzbank explained that GBP/USD failed to
maintain its breach of the 3 month resistance line last week and sold
off sharply. "It is under pressure", noting the key targets of the
1.3837 29th Feb low."
(Market News Provided by FXstreet)