GBP/USD: Bears on the sidelines after three-day fall

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

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    The GBP/USD pair traded moderately positive in Asian session after shedding more than 500 pips in the first three trading sessions of the week.

    Pound oversold

    Apart from being oversold on the technical charts, there is very little help as of now for the Pound. The latest exit polls remain in favor of EU membership. Still, Brexit fears continue to drive investors away from Sterling.

    On the data front, revision to UK fourth-quarter GDP is scheduled for release. Market expects GDP to be left unrevised. Across the pond, durable goods figure and weekly initial jobless claims are due for release.

    GBP/USD Technical Levels

    The immediate support is seen at 1.3924 (76.4% Fibo expansion of July 2014 high-April 2015 low-June 2015 high) would open doors for a re-test of the previous day’s low at 1.3878. On the other hand, a break above 1.3963 (resistance on hourly chart) would see the pair test 1.40 handle.
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