- Dollar rises sharply against GBP and EUR ahead of US jobs data.
- GBP/USD threatens the bottom of February and March.
- Worsening crisis in Ukraine affects markets.
The GBP/USD is falling significantly on Friday, on the back of a stronger dollar and amid an intensifying crisis in Ukraine. The decrease is also being due to a drag of the fall of the EUR/USD. The pair fell to 1.3270, hitting the lowest level since mid-December.
Should the pullback extend, GBP/USD’s next supports can be seen at 1.3240 and 1.3205. To the upside, resistance now appears at 1.3300 and 1.3340. The pair remains under pressure at the 1.3270 zone ahead of February US employment data.
The pound is on track for the lowest weekly close since December 2021 against the dollar. If it occurs at current levels, it will imply the breaking of a range that has been in place since the beginning of the year and could expose the 2021 floor, around 1.3150, which is also a level close to the 200-week average.
Stock markets in Europe have extended losses in the last hour, as have Wall Street futures. Negative weather due to the intensifying crisis in Ukraine is hitting the Euro and Pound particularly hard on Friday. Despite the decline in GBP/USD, the pound advances against the euro. EUR/GBP trades at 0.8250, the lowest level since 2016, the year of the Brexit referendum.
Technical levels
Source: Fx Street
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