GBP/USD Slides Further Below 1.4500 Handle

GBP/USD Slides Further Below 1.4500 Handle

23 May 2016, 13:49
Roberto Jacobs
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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."


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