GBP/USD to revisit 2009 low at 1.3503? – Rabobank

By FXStreet Analysts at Rabobank explained that following a corrective rebound from oversold levels to the 1.4668 high at the beginning of February, GBP/USD resumed its downside trend.

Key Quotes:

“At this stage the pair remains on track to end February below the 2010 low at 1.4231, which would validate the bearish break below the key multi-year trendline at 1.4545 witnessed in January.

In other words, GBP/USD remains vulnerable on the downside. By measuring the distance between the long- term trendline (marked on the monthly chart) and the June 2015 high at 1.5930, we obtained potential mid-term target just below the 2009 low at 1.3503.

Prevailing uncertainty about the outcome of the crucial referendum on the UK’s future in the EU is likely to be the main source of downside pressure on GBP/USD. For those who bet on the Brexit, perhaps the 1.20~ level would be more suitable target.

A strong rebound well above the crucial downward sloping trendline currently at 1.4545 would reduce the odds that GBP/USD could indeed revist the 2009 low at 1.3503 or even lower targets.”
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Source:: FX Street