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3 Mar 2014
GBP/USD falls below 1.6700
FXStreet (Córdoba) - After moving in ranges between 1.6750 and 1.6700 the GBP/USD broke below and tumbled to 1.6653, reaching the lowest price since last Thursday. The area around 1.6650 capped the downside and the Pound bounced slightly to the upside but unable to rise above 1.6670.
The US dollar gained momentum against European currencies during the American session as the Ukraine crisis escalates, accelerating the demand for safe haven assets.
Technical outlook for the GBP/USD
Last week the pair finished near 1.6750 but unable to hold above and lost upside momentum. Below 1.6650 the next support level to consider lies at 1.6600 - 1.6590, where last week lows are located.
“In the 4 hours chart indicators are turning lower still above their midlines, while price broke below its 20 SMA with a strong volume candle, which also suggest the pair may slip further: a break below 1.6650 is however required, to confirm another leg lower towards the 1.6600 area, strong Fibonacci support”, says Valeria Bednarik, Chief Analyst at FXStreet.
The US dollar gained momentum against European currencies during the American session as the Ukraine crisis escalates, accelerating the demand for safe haven assets.
Technical outlook for the GBP/USD
Last week the pair finished near 1.6750 but unable to hold above and lost upside momentum. Below 1.6650 the next support level to consider lies at 1.6600 - 1.6590, where last week lows are located.
“In the 4 hours chart indicators are turning lower still above their midlines, while price broke below its 20 SMA with a strong volume candle, which also suggest the pair may slip further: a break below 1.6650 is however required, to confirm another leg lower towards the 1.6600 area, strong Fibonacci support”, says Valeria Bednarik, Chief Analyst at FXStreet.