The uptick in the GBP/USD pair stalled and the pair fell back to 1.45 levels as the European stocks extended last week’s losses.

Risk-off helps treasuries

The demand for the treasuries rose amid risk-off. Furthermore, risk-off also means the Fed could be forced to delay the rate hike, which also makes treasuries attractive. Consequently, the USD strengthens against other risk currencies like GBP.

As of now, the pair is trading just below 1.45 levels. The economic calendar in Europe and the US is empty. Hence, the broader market sentiment could continue to guide the activity in the FX markets.

GBP/USD Technical Levels

The immediate resistance is seen located at 1.4547 (daily high), above which the pair could rise to 1.4590 (Friday’s high). On the other hand, a break below 1.4480 (daily low) could shift risk in favor of a drop to 1.4443 (38.2% of 1.4079-1.4668).

The uptick in the GBP/USD pair stalled and the pair fell back to 1.45 levels as the European stocks extended last week’s losses.

(Market News Provided by FXstreet)

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By FXOpen