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GBP/USD again fails to cut through hourly 200-MA

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Apr 14, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    American dollar suffered due to a weak rebound in CPI, pushing the GBP/USD pair back to hourly 200-MA, which if failed to take out due to a sharp drop in weekly jobless claims.

    Trades around 1.4160

    An attempt to take out hourly 200-MA level of 1.4175 ran out of steam earlier today, pushing the spot back to 1.4115 levels from where it recovered to 1.4178 on a 0.1% rise in CPI, which was weaker than expected figure of 0.2%.

    However, prices fell back to 1.4160 as initial jobless claims fell to lowest since 1973 last week. Meanwhile, Bank of England’s cautiously dovish stance and Brent polls showing a tie between “in” and “out” vote is also making it hard for GBP to recover losses.

    GBP/USD Technical Levels

    A strong resistance at 1.4176 (hourly 200-MA) needs to be breached if prices are to move higher to 1.42-1.4221 (hourly 50-MA). A violation there could signal intraday bearish invalidation, trapping bears on the wrong side and thus helping the pair extend gains to 1.4252 (50% of 1.4669-1.3835).

    Conversely, a break below 1.41 would expose support at 1.4079 (Jan 21 low), under which a strong support at 1.4032 (23.6% of 1.4669-1.3835). Beyond the same prices could put 1.40 handle to test.
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