The downside momentum in the sterling is now picking up further pace, dragging GBP/USD to the 1.3930 area.
GBP/USD in fresh multi-year lows
Spot has deepened further into the negative territory today, navigating levels last seen in March 2009 around 1.3930 following a pick up in the demand for the greenback, which has leaped to daily highs when measured by the US Dollar Index.
In the meantime, the pair is losing ground for the fourth consecutive month, exposed to further weakness as ‘Brexit’ jitters remains the main catalyst for the pair’s price action in the near to medium term.
GBP/USD levels to consider
As of writing the pair is retreating 0.52% at 1.3943 and a break below 1.3900 (psychological level) would expose 1.3681 (monthly low June 2001) and then 1.3653 (monthly low March 2009). On the upside, the next resistance lines up at 1.4372 (20-day sma) followed by 1.4552 (55-day sma) and finally 1.4670 (high Feb.4).