GBP/USD – dollar selling stalls, falls back to hourly 200-MA

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Mar 29, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    USD selling stalled, making way for GBP/USD bears to push the pair back to its hourly 200-MA at 1.4264 levels ahead of Fed’s Yellen speech.

    Rejected at 1.4307

    Markets read Federal Reserve policymaker Williams’ comments about negative rates as dovish. The resulting sell-off in the US dollar pushed the spot to a high of 1.4307 levels in the early US session.

    The traders now await US Fed President Yellen’s speech. Markets are interested to see if Yellen would maintain dovish view or comes out in support of her colleagues’ hawkish comments. Accordingly the overall demand for the US dollars would be influenced.

    GBP/USD Technical Levels

    The immediate hurdle is noted at 1.4307 (daily high), above which the spot may test 1.4330 (23.6% of 1.5930-1.3835). A violation there would open doors for 1.44 handle. On the flip side, acceptance below hourly 200-MA of 1.4264 would trap dollar sellers at the wrong end, resulting in a further drop to 1.42 (hourly 50-MA) and 1.4160 (hourly 100-MA).
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