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GBP/USD attempting to stabalise in strong downside

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 5, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Guatemala) - GBP/USD is consolidating the downside and attempting to make a recovery that is squashed by the markets appetite for dollars in a risk-off theme.

    The pound lost its shine at the end of 2015 as markets priced out the idea of a BoE hike while the divergence between the US and UK started to shine through the cracks in the UK's economy.

    GBP/USD downside fundamentals at play

    There are also nerves around the forthcoming referendum over Europe and the possibility of a Brexit in June this year. This week we await the US jobs data in the Nonfarm Payrolls as the key driver out

    Technically, Karen Jones , chief analyst at Commerzbank explained that, "currently intraday Elliott counts suggesting that rallies are likely to remain capped by 1.4990 – for now we will take profit on our shorts. Key short term resistance is the 1.5273 resistance line and the 200 day ma at 1.5323".
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