“¢ Resurgent USD demand prompts some aggressive selling on Tuesday.
“¢ Technical selling below 1.3300 handle aggravates the downward pressure.
The GBP/USD pair finally broke down of its Asian session consolidation phase and tumbled below the 1.3300 handle, hitting six-month lows.
In absence of any fresh news/development, the latest leg of sharp downfall over the past couple of hours could be solely attributed to a fresh wave of greenback buying interest. The prevalent strong bullish sentiment surrounding the US Dollar seemed unaffected by the ongoing slump in the US Treasury bond yields and kept exerting downward pressure on Tuesday.
This coupled with possibilities of some trading strops being triggered, and (or) fresh technical selling on a decisive break below the 1.3300-1.3290 region, further aggravated the selling pressure and contributed to the pair’s downfall to its lowest level since November 28.
Currently trading around the 1.3215 region, there aren’t any major market moving UK economic releases to provide any immediate respite and the momentum seems strong enough to continue dragging the pair lower ahead of the US CB consumer confidence, due later during the early NA session.
Technical levels to watch
The 1.3300 handle is likely to protect the immediate downside and is followed by support near the 1.3280-75 region, below which the pair is likely to continue with its depreciating slide in the near-term.
On the upside, any meaningful recovery attempt back above mid-1.3200s might now confront stiff resistance near the 1.3300 handle, which if cleared might trigger a short-covering bounce amid near-term oversold conditions.
Share
