GBP/USD drops sharply to 1.4330 as EU stocks open lower

The recovery in the GBP/USD lost legs near 1.4370 region, sending the prices sharply lower, as the bulls were hit hard by the negative start on the European indices.

GBP/USD gives up almost 40-pips 

The GBP/USD pair trades 0.11% higher at 1.4337, hovering close to fresh session lows struck at 1.4333 few minutes ago. The cable shaved-off gains and came under renewed selling pressure after risk-off sentiment intensified on weaker opening on the European stocks, with the German DAX down -0.50%, the UK’s FTSE tanks -0.56%, while the Euro Stoxx 50 declines -0.42%.

However, the downside remains capped as the oil prices are extending their rebound, which helps keep sentiment buoyed. In the day ahead, the UK docket remains absolutely data-empty and hence, the major will continue to track the sentiment on the global equities and oil markets.

GBP/USD Levels to consider

The pair has an immediate resistance at 1.4369 (Daily high), above which 1.4400 (psychological levels) would be tested. On the flip side, support is seen at 1.4300 (round figure) below that at 1.4275/66 (10-DMA/ 1h 200-SMA).