FXstreet.com (Barcelona) - The Sterling has continued devaluating against the Euro on Monday's Asian session after a rather negative previous week. At the moment GBP/USD has broken below 1.4200 level and s trying to pull up from 1.4130 area (Feb 12 low.)
Below 1.41.30, the Sterling could drop towards the 1.4040 area (Feb 2 low), and below here focus would be in the1.39.30 area. On the upside, a sustained rebound could open the doors for 1.4265 before 1.4335 and 1.4415. Nicole Elliot, senior technical analyst at Mizuho Corporate Bank warns about a sudden movements on the Pound: Dropping back from the moving averages and should try again this week to form an interim low, hopefully around retracement support but maybe we shall have to live through a nasty 'spike low'.
The Drop gave away last week all the ground gained in a seven-day which took it from 1.4050 to 1.4986, Accor5ding to the Easy Forex Team, recession forecast by the BoE weighed on the Sterling: The GBP pulled back to significantly as the rebound off multi-year lows came to an end. Hurting Sentiment was the rise in risk aversion and comments from BoE Governor King stating that the UK was in deep recession expecting a 4% fall in GDP, adding further monetary easing may be required.