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21 Mar 2016
GBP/USD dips below 1.44 on Brexit fears
GBP/USD dipped below 1.44 handle as political developments in the UK over the weekend put Tory unity on austerity at risk and heightened bears of Brexit.
Cable gapped lower
Pair opened lower in early Asia after Iain Duncan Smith (Secretary of State for Work and Pensions) resigned over the weekend in retaliation to Osborne’s proposed cuts to disability benefits during last week’s budget.
Markets believe Smith’s resignation has got more to do with Brexit issue and that he would throw his weight behind Brexit campaign. Consequently, Sterling is on a back foot, trading below 1.44 levels and eyeing support at 1.4483 levels.
GBP/USD Technical Levels
The immediate hurdle is seen at 1.4436 (Mar 11 high), above which gains a re-test of 1.45 handle looks likely. A break higher would expose 1.4533 (50% of 1.5230-1.3835). Conversely a break below immediate support at 1.4383 (support on daily chart) would expose 1.4252 (50% of 1.4669-1.3835) and 1.4173 (Mar 8 low).
Cable gapped lower
Pair opened lower in early Asia after Iain Duncan Smith (Secretary of State for Work and Pensions) resigned over the weekend in retaliation to Osborne’s proposed cuts to disability benefits during last week’s budget.
Markets believe Smith’s resignation has got more to do with Brexit issue and that he would throw his weight behind Brexit campaign. Consequently, Sterling is on a back foot, trading below 1.44 levels and eyeing support at 1.4483 levels.
GBP/USD Technical Levels
The immediate hurdle is seen at 1.4436 (Mar 11 high), above which gains a re-test of 1.45 handle looks likely. A break higher would expose 1.4533 (50% of 1.5230-1.3835). Conversely a break below immediate support at 1.4383 (support on daily chart) would expose 1.4252 (50% of 1.4669-1.3835) and 1.4173 (Mar 8 low).