GBP/USD battling bears to stay above 1.42

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Mar 8, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    The GBP/USD pair is struggling hard to avoid a dip below 1.42 handle following Carney’s cautious take on Brexit’s impact on UK economy and British Pound.

    Eyes BOE speak

    Next on tap is Bank of England (BOE) member Weale’s comments. The policymaker is likely to follow Carney, who said Pound could take a hit on Brexit and lead to rise in imported inflation.

    The strength in the EUR/GBP cross on account of the risk-off in the European equities is also weighing over Cable. Given the economic calendar in the US is light; the focus is likely to be on Weale’s comments and action in the US stock markets.

    GBP/USD Technical Levels

    The immediate support is seen at 1.4188 (5-DMA) - 1.4178 (23.6% of 1.3835-1.4284), which if taken out could see the spot test 1.4112 (38.2% of 1.3835-1.4284). On the other hand, a break above 1.4184 (daily high) could see the pair test 1.4330 (23.6% of 1.5930-1.3835).
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