Sterling to a 8 year low against U.S dollar

(9:00 GMT)

The panic in the British banking system which is taking its toll on global markets for the last 24 hours, continues this morning.

Major stock losses of financial institutions are cussing another run to safe heaven currencies by investors in the Forex market.
The big gainers remain the U.S dollar and the Japanese Yen.

GBPUSD has already completed a 1000 pips down move since Monday, now trading around 1.3750 a level last seen on Jun 2001.

The last support level for this pair is at 1.3690, a break under this level will mark a 23 year low – a terrible fall for the once majestic Pound.

An interesting technical point: the GBPUSD was lucked in a trading range between the years 2000 and 2002 ( during the high-tech bubble burst), this range was mainly between 1.3990 and 1.4855,

If GBPUSD will retrace back above 1.3990, there is a good chance this range will form once again.

Z.Georgi

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