Risk-sensitive sterling collapses on Russia’s invasion of Ukraine

Cable slumped to two-month low against the US dollar as war in Ukraine prompted traders to migrate into safety, pushing risk-sensitive pound sharply lower.
Thursday’s nearly 2% fall cracked important Fibo support at 1.3300 (76.4% retracement of 1.31611.3748 rally), with clear break here to expose key supports at 1.3164/61 (Dec 2021 low / Fibo 38.2% of 1.1409/1.4249 rally) and increase risk of retesting psychological 1.30 support.
Geopolitical situation is expected to remain pound’s key driver, with brief corrective actions on oversold studies to precede fresh weakness and offer better selling opportunities.

Res: 1.3385; 1.3403; 1.3455; 1.3491
Sup: 1.3300; 1.3272; 1.3240; 1.3197