GBP/USD drops further to 1.4140 on Brexit, Gilts

Pablo Piovano FXStreet

The Sterling remains on the defensive at the beginning of the week, now relegating GBP/USD to test daily lows in the 1.4140 region.

GBP/USD tumbles on ‘Brexit’ fears

Spot is retreating for the fourth consecutive session so far, shedding nearly five cents since last week’s spike to the mid-1.4600s.

GBP picked further downside traction as market participants remain concerned about the likeliness of a ‘Brexit’ scenario in response to latest polls released over the weekend.

Falling yields in UK Gilts – 5y and 10y in session lows – continue to support the increasing offered bias, ahead of UK’s CPI figures due tomorrow and the BoE MPC meeting expected on Thursday.

GBP/USD levels to consider

As of writing the pair is retreating 0.68% at 1.4158 and a break below 1.4116 (low Jun.13) would aim for1.4088 (low Apr.14) and then 1.4004 (low Apr.6). On the other hand, the next resistance aligns at 1.4355 (100-day sma) followed by 1.4415 (55-day sma) and finally 1.4484 (20-day sma).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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