GBP/USD takes a breather after fresh 6-month lows

By | Updated September 03, 2014 AAA

FXStreet (Córdoba) - GBP/USD is staging a minor rebound after yesterday's sell off took it to its lowest levels in 6 months amid fears of a yes vote in Scotland.

GBP/USD had its worst performance since January on Tuesday, falling nearly 150 pips throughout the day weighed by news that the Scottish polling gap is narrowing ahead of the referendum on Sep 18.

Cable extended losses during the Asian session and bottomed out at 1.6444, posting its lowest level since February 12 before rebounding. The pair has managed to recover to the 1.6480 zone but the correction is weak compared to the steep fall.

GBP/USD technical levels

At time of writing, GBP/USD is trading at 1.6475, a few pips above its opening price, with immediate resistance at 1.6490 (23.6% Fibo of this week fall 1.6643-1.6444) and 1.6520 (38.2% fibo). On the other hand, should renewed pressure take GBP below 1.6444 (Sep 3 low), next supports are seen at 1.6425 (Feb 12 low) and 1.6400 (psychological level).

You May Also Like

Related Forex Analysis
  1. Forex News

    Weekly Trading Forecast: FOMC, GDP, Greece and Much More Ahead

  2. Forex News

    British Pound Likely to Rally Further, but Watch these Two Key Risks

  3. Forex News

    Strategy Video: Can We Still Trade Amid Central Banks, HFT, Exuberance

  4. Forex News

    UK Election Campaign unfolding neck and neck - TDS

  5. Forex News

    Key UK events next week; Manufacturing PMI - TDS

Trading Center