FXStreet (Mumbai) – The GBP/USD pair remains around multi-year lows after having closed lower on Friday despite a batch of weaker-than-expected US economic data.
Sterling down 1K pips in last one month
The British Pound began its losing streak on Dec 12th when it traded at 1.5250. Throughout last one month, the spot closed higher on just three trading days. The sell-off has been blamed to falling BOE rate hike bets.
On the other hand, demand for the USD also stayed intact despite the financial market instability. Fed’s Dudley assured markets on Friday the outlook has not changed much since rate hike in December and that kept the USD demand intact.
GBP/USD Technical Levels
The spot now trades around 1.4280. The immediate resistance is seen at 1.4352 (Jan 12 low), above which the pair could test 5-DMA at 1.4410. On the other hand, a break below 1.4250 (Friday’s low) would expose 1.4227 (May 2010 low).
(Market News Provided by FXstreet)