GBP/USD Slides Further Below 1.4500 Handle
The GBP/USD
pair faded a bullish spike to 1.4549 and extended its slide below
1.4500 handle to currently trade near 1.4475, off day's through level.
'Brexit'
continue to dominate the headline surrounding the British Pound. The
details from the latest UK Treasury Report on 'Brexit' turned investors
cautious and weighed on the GBP/USD pair. The pair dropped to an
intraday low of 1.4461 before retracing few pips to 1.4475 level.
The pair has now decisively broken below 1.4500 handle support despite
of the fact that St. Louis Fed President James Bullard comments didn't
point to a case for June Fed rate-hike. Traders now turn their focus to
the US flash manufacturing PMI data due later in the NY session for
further trading cues.
Technical outlook
Valeria Bednarik, Chief Analyst FXStreet noted, "the 4 hours chart shows
that the price develops well below a bullish 20 SMA, whilst the
technical indicators remain within bearish territory, with modest
bearish slopes, but far from their lows, suggesting limited downward
potential at current levels. A break below the daily low on the other
hand, cans see the pair extending its decline down to 1.4430, the 23.6%
retracement of the mentioned decline. Above the daily high on the other
hand, the recovery can extend up to 1.4540 first, en route to the 1.4600
region."
