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GBP/USD attempting a break below hourly 200-MA

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Apr 18, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    GBP/USD is on a weak footing amid oil driven risk-off in the markets, now attempting a break below 1.4164 (hourly 200-MA + hourly 50-MA + 23.6% of 1.5230-1.3835).

    Rejected at 50-DMA

    A break above hourly 200-MA on Friday saw fresh bids come-in, however, bullish momentum ran out of steam around 50-dMA hurdle. The pair eventually trimmed gains to end last week at 1.4196 levels.

    Early Asian trading saw markets respond to failure of Doha talks by sending oil and commodity currencies lower. GBP too is feeling the heat as oil driven low inflation would only add the pressure on BOE to delay its rate hike or in fact begin telegraphing a rate cut.

    GBP/USD Technical Levels

    The pair hit a session low of 1.4159 and now trades around 1.4162. Acceptance below 1.4154 (38.2% of 1.4669-1.3835) would expose 1.4079 (Jan 21 low) followed by 1.4032 (23.6% of 1.4669-1.3835). Conversely, recovery above 1.4164 (hourly 200-MA + hourly 50-MA + 23.6% of 1.5230-1.3835) would open doors for a re-test of 1.42. Next resistance is noted at 1.4252 (50% of 1.4669-1.3835).
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