GBP/USD retreats below 1.3700, ‘Brexit’ weighs

After a failed attempt to regain the critical 1.4000 handle in early trade, GBP/USD has now returned to the 1.3700 neighbourhood.

GBP/USD finds support at 1.3230

The sterling remain depressed after the UK has decided to leave the European Union today following the ‘Leave’ victory with nearly 52% of the votes.

Spot has managed to bounce off the 1.3230 area, the lowest level since 1985, although the bull run seems to have lost momentum in the vicinity of the 1.4000 handle.

Ahead in the session, the focus of attention will remain on GBP and the UK developments as global markets keep digesting the unexpected event.

Across the Atlantic, US Durable Goods Orders and the final print of the Consumer Sentiment for the current month will take centre stage later in the NA session.

GBP/USD levels to consider

As of writing the pair is retreating 7.96% at 1.3694 facing the next support at 1.3230 (low post-referendum Jun.24). On the other hand, a surpass of 1.4000 (psychological handle) would aim for 1.4350 (100-day sma) and then 1.4409 (20-day sma).