GBP/USD falls below $1.32 on risk aversion
GBP/USD falls below 1.32 on risk aversion
GBP/USD tumbles below 1.32 to a 14-month low as it comes under heavy selling pressure in the wake of USD strength and strong risk off trade flows.
Safe haven demand continues to boost the USD as the Russia Ukraine war intensifies and Russia shows no signs of slowing its assault on Ukraine. Over the weekend, Russia reiterated that it will continue attacking until their goal is achieved.
PM Boris Johnson has said that the UK is committed to ramping up pressure on Russia. His comments come amid reports that the West could sanction Russian oil, sending oil prices to $120 per barrel and fueling fears of stagflation.
There is no high impacting UK data due until GDP figures at the end of the week, which leaves sentiment in the driving seat.
USD continues to go from strength to strength on safe haven inflows and after strong US NFP report on Friday which saw 678k jobs created, support a more hawkish Fed next week.
The US Dollar index trading above 99.00 for the first time since May 2020. There is no high impacting US data due.
Where next for GBP/USD?
GBP/USD trades sharply lower breaking below several key supports. The pair is now eyeing 1.3140 December 2020 low as the next line in the sand, the 20 sma is crossing below the 100 sma in a bearish signal which could see sellers push below 1.3140 towards, 1.31 round number with a move below here opening the door to 1.3170.
It is worth noting that the RSI is pushing into oversold territory so some consolidation could be on the cards or even a move highers. Buyers would look for a move over 1.32 Friday’s low in order to bring 1.3275 the February low into play, with a move above here negating the near term down trend.
StoneX Financial Ltd (trading as "FOREX.com") is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, FOREX.com does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date.
This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it. No opinion given in this material constitutes a recommendation by FOREX.com or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.
The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although FOREX.com is not specifically prevented from dealing before providing this material, FOREX.com does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation. For further details see our full non-independent research disclaimer and quarterly summary.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. CFD and Forex Trading are leveraged products and your capital is at risk. They may not be suitable for everyone. Please ensure you fully understand the risks involved by reading our full risk warning.
FOREX.com is a trading name of StoneX Financial Ltd. StoneX Financial Ltd is a company incorporated in England and Wales with UK Companies House number 05616586 and with its registered office at 1st Floor, Moor House, 120 London Wall, London, EC2Y 5ET. StoneX Financial Ltd is authorised and regulated by the Financial Conduct Authority in the UK, with FCA Register Number: 446717.
FOREX.com is a trademark of StoneX Financial Ltd. This website uses cookies to provide you with the very best experience and to know you better. By visiting our website with your browser set to allow cookies, you consent to our use of cookies as described in our Privacy Policy. FOREX.com products and services are not intended for Belgium residents.
© FOREX.COM 2026