24 Feb 2016
GBP/USD: investors dumping sterling on Brexit fears - FXStreet
Ana Salama, economist at FXStreet, explained that the British pound extended losses into a third consecutive day on Wednesday and scored a fresh 7-year low of 1.3877 during the European session amid uncertainty surrounding UK referendum on EU membership and fears of a ‘Brexit’.
Key Quotes:
"Even though GBP/USD managed to recover from lows as the greenback weakened during the New York session, the downside remains favored according to short-term charts. In the 4 hours chart, the pair hovers well below a berish 20-SMA while indicators attempt to recover from lows.
However, the RSI remains in overbought territory in 4 hours and daily charts, suggesting the pound might enjoy a phase of consolidation and even stage a mild bounce before resuming the fall. A break below 1.3850 would pave the way toward next target at 1.3652, which is the March 2009 monthly low."
Key Quotes:
"Even though GBP/USD managed to recover from lows as the greenback weakened during the New York session, the downside remains favored according to short-term charts. In the 4 hours chart, the pair hovers well below a berish 20-SMA while indicators attempt to recover from lows.
However, the RSI remains in overbought territory in 4 hours and daily charts, suggesting the pound might enjoy a phase of consolidation and even stage a mild bounce before resuming the fall. A break below 1.3850 would pave the way toward next target at 1.3652, which is the March 2009 monthly low."