FXstreet.com (Barcelona) - After falls around 215 pips in the European session, the GBP/USD has broken the important support at 1.4135 and has fallen below the 1.4100 level. The pair has fallen from the 1.4246, at the beginning of the European session, to the 1.4030 level, new minimum since January 21.
Currently, the pair is trading around the 1.4070/90 band.If the downside movement is confirmed, the pair will go down to the 1.4090 and the 1.4020.
According to Valeria Bednarik, FXstreet.com collaborator, The EU leaders decision to not to approve a bailout for the eastern European banks has sent the Dollar higher in early Europe: The decision by European Union leaders over the weekend not to coordinate a bailout for central and eastern European economies has boosted risk aversion,sending dollar higher in early Europe. GBP is also suffering downside pressure, and remains fighting the 1.4200 zone. The pair has already tested the 1.4255, first support for today, followed by the tough congestion zone the pair has between 1.4120/35.