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GBP/USD April fooled bears

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Apr 4, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    GBP/USD is back above 1.43 handle and is showing no signs of exhaustion, indicating Friday’s fall was an April fool’s day move that trapped bears.

    Will it last?

    Today’s move lacks any fundamental trigger, but so did the move on Friday. There were no Brexit related surprise on Friday nor was the UK PMI manufacturing horribly weak. Furthermore, rebound in US wage growth failed to convince markets that it would be enough for the Fed to move rates.

    The US data calendar does not offer first tier data release today. Hence, today’s gains may remain intact till tomorrows UK services PMI release unless there is fresh Brexit related news flow.

    GBP/USD Technical Levels

    The pair has clocked a fresh session high of 1.4320. Immediate hurdle at 1.4330 (23.6% of 1.5930-1.3835) would expose 1.4351 (61.8% of 1.4668-1.3835), above which the cross could target 1.44. On the other hand, a breakdown of 50-DMA support at 1.4279 would open doors for a re-test of 1.4252 (50% of 1.4668-1.3835) and 1.4191 (daily low).
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