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GBP/USD back to square one

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 10, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    The bid tone around the USD strengthened on not so dovish Yellen, pushing the GBP/USD pair down near 1.4470 levels; largely unchanged on the day.

    UK economy slowed at the turn of the year

    The National Institute of Economic and Social Research (NIESR) GDP estimate released today showed growth slowed around the turn of the year, hit by weak industrial production. The GDP slowed to 0.4% in Q4 from Q3 reading of 0.5%.

    So far, the bearish data has been ignored by the markets, since the slowdown is well-known and priced-in. The focus now is on the QA session at Yellen testimony before congressional committee.

    GBP/USD Technical Levels

    The immediate resistance is seen at 1.4513-1.4519 (5-DMA and 23.6% of 1.5930-1.4079 + 38.2% of 1.5230-1.4079), above which the spot could target 1.4546 (Feb 8 high). On the other hand, a break below confluence of support around 1.4450 (hourly 200-MA + hourly 50-MA) would open doors for a drop to 1.44 levels.
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