GBPUSD opened with a gap lower at the open of Asian trading on Monday at 1.4261 as the markets reacted to news over the weekend regarding Brexit. On Friday the pair closed at 1.4394.
The pair has retraced more than 76.4% of the upleg from 1.4078 to 1.4667 (January 21 to February 4 rise). This Fibonacci level comes in at 1.4205, which was acting as support until early this morning but has been broken. This opens the way for a slide to retest the January 21 low of 1.4078.
Technical indicators are highlighting a bearish bias. On the daily chart, the moving averages are negatively aligned, with the 50-day being below the 100 and 200-day moving averages. The RSI is below 50 and falling and the MACD is below zero.
Meanwhile,immediate resistance is seen at the 61.8% Fibonacci at 1.4304.
Risk Warning: Forex, Commodities, Options and CFDs (OTC Trading) are leveraged products that carry a substantial risk of loss up to your invested capital and may not be suitable for everyone. Please ensure that you fully understand the risks involved and do not invest money you cannot afford to lose. Please refer to our full Risk Disclosure.