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GBP/USD at fresh lows, rising bottom formation at risk

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

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Mumbai) - The GBP/USD ran into fresh offers at 1.4332 and is now threatening to breach the rising bottom formation seen on the intraday charts.

    Hovers around 1.4278

    The spot is trading around a crucial support of the rising trend line at 1.4278. Sterling failed to sustain above 1.44 earlier today as the cross driven rally in the pair ran out of steam. Moreover, BOJ’s negative rates decision only had a temporary positive impact on Sterling, since markets fear fresh rounds of currency wars would force BOE to delay its rate hike.

    The immediate focus now is on the US Q4 preliminary GDP figure. It remains to be seen if the Cable rebounds from the critical support or heads to further lows.

    GBP/USD Technical levels

    The immediate resistance is seen at 1.4290 (5-DMA), which if taken out would open doors for a rally to 1.4351 (23.6% of 1.5230-1.4079). On the other hand, a break below 1.4253 (10-DMA), could send the prices lower to 1.4173 (Jan 26 low).
    For more information, read our latest forex news.
     

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