The sterling keeps the bearish tone at the beginning of the week, with GBP/USD testing the 1.3840/35 band, fresh multi-year lows.
GBP/USD lower on USD-buying
Spot is gaining some pips after hitting fresh lows in levels last since in March 2009 near 1.3830, all amidst a gloomy scenario where ‘Brexit’ fears continue to drive the sentiment around the British pound.
Data wise in the UK, Mortgage Approvals and Consumer Credit have come in better than expectations during January, although market participants largely bypassed the results. Against the backdrop of solid USD-buying, Pending Home Sales and the Chicago PMI are due later in the NA session.
GBP/USD levels to consider
As of writing the pair is retreating 0.11% at 1.3848 and a break below 1.3836 (multi-year low Feb.29) would expose 1.3681 (monthly low June 2001) and then 1.3653 (monthly low March 2009). On the upside, the next resistance lines up at 1.4276 (20-day sma) followed by 1.4461 (55-day sma) and finally 1.4670 (high Feb.4).