The GBP bears tighten their grip on the GBP/USD pair in the mid-European session, knocking-off the major to fresh seven-year lows below 1.3850.
GBP/USD sold-off into risk-off moods
The GBP/USD pair trades 0.19% lower at 1.3853, hovering within a striking distance of multi-year lows printed at 1.3841 over the last hour. The cable keeps losses and makes minor recovery-attempt from lows amid the European stocks sell-off. The Euro Stoxx 50 drops -1.06%, while the DAX sinks -1.60%.
Moreover, subdued oil prices are also weighing on London stocks and hence, collaborate to the downside in the major. The UK’s FTSE slips -0.70% to trade around 6,050 levels. Meanwhile, the GBP traders completely ignored the better than expected UK mortgage approvals data, which hit a 2-year high, as the risk-off sentiment continues to dominate markets.
Markets now await the US economic data, which includes the pending home sales and Chicago PMI, for fresh cues on the cable.
GBP/USD Levels to consider
The pair has an immediate resistance at 1.3896/1.3900 (5-DMA/ round number), above which 1.3927/56 (1h 50-SMA/ 1h 100-SMA) would be tested. On the flip side, support is seen at 1.3800-1.3750 (March 2009 levels).