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GBP/USD: Brexit fears and US CPI chipping away

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 19, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    GBP/USD has fallen below the 50 and 20 sma on the hourly chart, capped by the 100 sma on the same time frame and is set for a bearish close ahead of next week where the topic of a Brexit will start to heat up.

    The data today from the US in the CPI's was encouraging, but analysts at ING maintained a bearish spin on the outlook for the US economy and while the CPI's are indeed an improvement on both prior and expectations for last month, there are still concerns in the US economy that overshadowed such a result, putting into question whether or not the Fed can continue raising interest rates. For the time being, the greenback has garnered strength on the closing session for the week and is up across the board.

    GBP/USD levels

    Technically, GBP/USD is trading with a bearish bias on both the short term outlook and within the daily bearish trend, below the 20 dma at 1.4399 and resisted by the 50 dma at 1.4567 today.

    We are now trading below the pivot of 1.4328 after a high was scored of 1.4360. We are on track for S3 at 1.4121 to the downside so long as we remain better offered below the 1.43 handle targeting a score to 1.4189 in the upcoming week, testing January's support levels.
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