GBP/USD gaining traction towards 1.42 handle

By FXStreet GBP/USD is currently trading at the mid point of the 1.41 handle in recovery from the recently posted lows of 1.4056 that were scored on one of the biggest sell offs in the pound since October 2008 and Mervin King’s statement when he suddenly announced that the pound was overvalued and Sterling collapsed.

Sterling has seen big sell off’s since then, such as in 2009 and at the start of this year and when cable moves, it flies. Today was on the fears of a Brexit when Boris Johnson added himself to the list of those in a split Tory party campaigning for an exit from the EU.

Sterling opening in Asia in a bearish gap of over two big figures and the downside accelerated throughout markets opening in European and US trade. To the rescue was a set of contractionary figures again in US manufacturing PMI’s missing expectations again and lower than prior for the month of Feb, 51.0 vs 52.0 and 52.4 prior.

GBP/USD levels

Technically, GBP/USD trades circa two big figures below the pivot of 1.4327 and has accelerated below the 20 monthly sma and was capped on the daily sticks by the 20 dma at 1.4400 on last …read more

Source:: FX Street