The British Pound is being dragged lower by plummeting stocks and oil's prices, all reaching fresh multi-month lows after the European opening, as risk aversion dominates the scene. The GBP/USD pair fell down to 1.4411, shedding over 100 pips in the first hour of trading. The UK calendar will remain empty today, while the only risk event coming from USA will be the second-day testimony of FED's Yellen before the Congress.
From a technical point of view, the pair is retreating once again from the 1.4520/30 region, a major static resistance, in where the 38.2% retracement of its latest weekly decline converge with the 4 hours 200 EMA. Now breaking below its 20 SMA, and with the technical indicators heading sharply lower, the pair has room to extend its decline towards the weekly low and next Fibonacci support at 1.4350, on a break below 1.4400.
The upside seems limited, with 1.4470 being the immediate resistance, ahead of the mentioned 1.4520/30 price zone, where advances will likely stall amid selling interest around it.
View the live chart of the GBP/USD
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