GBP/USD Drops Further, ‘Brexit’ Weighs

GBP/USD Drops Further, ‘Brexit’ Weighs

1 June 2016, 12:02
Roberto Jacobs

GBP/USD Drops Further, ‘Brexit’ Weighs

The sterling keeps losing traction today, now relegating GBP/USD to the lower bound of the range in the 1.4450/40 band.

GBP/USD weaker on ‘Brexit’ push

The selling pressure is gaining steam around GBP today following latest poll results on the UK-EU Referendum on June 23. Polls showed the ‘Leave’ vote would be not only narrowing its gap vs. the ‘Stay’ vote, but according to some polls it would be on the lead, albeit marginally.

Better-than-expected manufacturing PMI in the UK economy have done nothing to lift spirits around GBP, while less auspicious figures from the credit sector and mortgage approvals seem to have collaborated with the downbeat sentiment.

GBP/USD levels to consider

As of writing the pair is losing 0.22% at 1.4447 and a breakdown of 1.4399 (55-day sma) would aim for 1.4342 (100-day sma) and then 1.4330 (low May 16). On the flip side, the next hurdle aligns at 1.4744 (high May 26) ahead of 1.4749 (200-day sma) and then 1.4770 (high May 3).


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