GBP/USD: Bears Target Feb Lows on 1.38 Handle
GBP/USD
is refuelling for another attempt at the downside to close the week,
heading for a possible test of the 1.4000 handle to meet recent lows of
1.4004.
GBP/USD is heavily offered on the back of Brexit fears.
"we see risk that Brexit could conceivably knock GBP/USD down by around
12% from current levels," argued analysts at Rabobank.
A Brexit would be a nightmare for the Old Lady
At
this moment, the saving grace to the pound has been the weakness in the
greenback while timings of the next rate hike from the Fed has been set
back by perceived global negative ramifications to the U.S. economy.
However, the FOMC minutes yesterday were somewhat less dovish than
expected offering the U.S. some relief.
GBP/USD levels
Karen
Jones, chief analyst at Commerzbank explained that GBP/USD failed to
maintain its breach of the 3 month resistance line last week and sold
off sharply. "It is under pressure", noting the key targets of the
1.3837 29th Feb low."
(Market News Provided by FXstreet)
