21 Jan 2016
GBP/USD breaks below 1.41
FXStreet (Mumbai) - The GBP/USD has finally dropped below 1.41 levels after repeatedly failing to take out the hourly 50-MA in the last 24 hours.
Pound offered on Brexit fears
The latest drop in being blamed on Brexit fears. The selling gathered pace as the UK PM Cameron is expected to throw light on Brexit issue at his Davos speech. However, Cameron expected to outline the risks of Brexit.
Hence, the fall indicates the markets and PM Cameron may not be on the same page. Ahead of Cameron’s speech at Davos, the pair may be influenced by the action in the EUR/GBP cross after the ECB rate decision.
GBP/USD Technical Levels
The immediate support is seen at 1.4052 (Feb 2009 low), under which the pair could drop to 1.40 handle. On the higher side, a major resistance is seen at the hourly 50-MA at 1.4172. A break above the same could see the pair revisit 1.42 handle.
Pound offered on Brexit fears
The latest drop in being blamed on Brexit fears. The selling gathered pace as the UK PM Cameron is expected to throw light on Brexit issue at his Davos speech. However, Cameron expected to outline the risks of Brexit.
Hence, the fall indicates the markets and PM Cameron may not be on the same page. Ahead of Cameron’s speech at Davos, the pair may be influenced by the action in the EUR/GBP cross after the ECB rate decision.
GBP/USD Technical Levels
The immediate support is seen at 1.4052 (Feb 2009 low), under which the pair could drop to 1.40 handle. On the higher side, a major resistance is seen at the hourly 50-MA at 1.4172. A break above the same could see the pair revisit 1.42 handle.