GBP/USD sell-off continues, drops to 23.6% Fibo support

Bearish mood on Sterling strengthened one step further, taking the GBP/USD pair lower to 1.4032 (23.6% of 1.4669-1.3835) levels.

Awaits US Fed minutes

Traders await US Fed minutes, which could throw a light on a possible timing of the next rate hike. Heading into the event, the bears are likely to remain in control since the latest Brexit poll showed the gap between ‘exit’ vote and ‘leave’ vote narrowed.

Spot failed to take out 1.4165 (23.6% of 1.5230-1.3835) earlier today following which a wave of selling helped breach key technical levels of 1.4117 and 1.4079. The spot currently trades around 1.4040 levels.

GBP/USD Technical Levels

The immediate support is seen at 1.4032 (23.6% of 1.4669-1.3835), under which the spot may test 1.4 handle. A violation there would expose 1.3946 (Feb 29 high). On the other hand, a break above resistance at 1.4079 (Jan 21 low) would shift risk in favor of a re-test of 1.4117 and 1.4165 (23.6% of 1.5230-1.3835).