- GBP / USD is down 1.16% on the day and is approaching 1.3500.
- The strength of the US dollar and concerns about the UK economy hit the pound.
- Below 1.3500, then the pair could target the yearly low at 1.3455.
The pound sterling has gone through its worst session in recent months on Tuesday. The pair GBP/USD it has plunged about 1.16% so far today, reaching levels close to 1.3520 for the first time since mid-January.
Strong USD, rising gasoline prices hit the British pound
The pound is falling sharply on Tuesday against a stronger US dollar. Demand for the dollar has been boosted by the robust rally in US bond yields, triggered by signals from the Federal Reserve towards the end of the accommodative policy adopted in the wake of the COVID-19 crisis.
Additionally, rising gasoline prices and fuel shortages caused by Brexit restrictions in the UK are raising concerns about the prospects for fragile economic growth and rising inflation and driving investors away from the British pound. .
GBP / USD approaching yearly low at 1.3455
From a technical point of view, a further decline below the intraday low at 1.3525 could send the pair towards 1.3455 (Jan 11 low) and 1.3434 (Dec 29 low).
On the upside, with the RSI index at oversold levels on hourly and daily charts, the pair could show some recovery attempts from the lows of 1.3525. Along those lines, a GBP rebound past 1.3600 (Aug 24 & Sept 22 lows) could ease selling pressure on the pair and open the way to 1.3730 (Sept 27 high) and 1.3750 (Sept 27 high). September 23).
Technical levels
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