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GBP/USD back to square one after US data

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 25, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    The GBP/USD fell back to 1.3940; a level seen in early US; after the data in the US showed durable goods orders in February rose by most since March.

    Back below hourly 50-MA

    As of writing, the spot traded below its hourly 50-MA seen at 1.3968 levels. Sterling had jumped to near 1.40 levels on the back of a broad based USD selling. However, the bid tone around USD strengthened ahead of the data and strengthened further following upbeat data release.

    Ahead in the day, the oil price action and the broader market sentiment could influence the pair. The oversold GBP also risks correction if investors chose to square of positions ahead of the weekend.

    GBP/USD Technical Levels

    The immediate resistance is seen at 1.3967 (hourly 50-MA), above which gains could be extended to 1.40 levels. On the other hand, a break below 1.39 would open doors for a re-test of 1.3878 (previous day’s low).
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