Risk-sensitive sterling collapses on Russia's invasion of Ukraine
|Cable slumped to two-month low against the US dollar as war in Ukraine prompted traders to migrate into safety, pushing risk-sensitive pound sharply lower.
Thursday’s nearly 2% fall cracked important Fibo support at 1.3300 (76.4% retracement of 1.31611.3748 rally), with clear break here to expose key supports at 1.3164/61 (Dec 2021 low / Fibo 38.2% of 1.1409/1.4249 rally) and increase risk of retesting psychological 1.30 support.
Geopolitical situation is expected to remain pound’s key driver, with brief corrective actions on oversold studies to precede fresh weakness and offer better selling opportunities.
Res: 1.3385; 1.3403; 1.3455; 1.3491
Sup: 1.3300; 1.3272; 1.3240; 1.3197
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.