GBP/USD Drops Sharply to 1.4330 as EU Stocks Open Lower
The recovery in the GBP/USD lost
legs near 1.4370 region, sending the prices sharply lower, as the bulls
were hit hard by the negative start on the European indices.
GBP/USD gives up almost 40-pips
The
GBP/USD pair trades 0.11% higher at 1.4337, hovering close to fresh
session lows struck at 1.4333 few minutes ago. The cable shaved-off
gains and came under renewed selling pressure after risk-off sentiment
intensified on weaker opening on the European stocks, with the German
DAX down -0.50%, the UK’s FTSE tanks -0.56%, while the Euro Stoxx 50
declines -0.42%.
However, the downside remains capped as the oil
prices are extending their rebound, which helps keep sentiment buoyed.
In the day ahead, the UK docket remains absolutely data-empty and hence,
the major will continue to track the sentiment on the global equities
and oil markets.
GBP/USD Levels to consider
The
pair has an immediate resistance at 1.4369 (Daily high), above which
1.4400 (psychological levels) would be tested. On the flip side, support
is seen at 1.4300 (round figure) below that at 1.4275/66 (10-DMA/ 1h
200-SMA).
