GBP/USD: Bulls attempting gains above weekly 5-MA

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 3, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - Sterling bulls are working hard to take the GBP/USD pair higher, after having taken out the weekly 5-MA located at 1.4400 levels in the Asian session.

    Eyes UK data

    Monday’s manufacturing PMI bettered estimates, while construction PMI released yesterday missed estimates. The currency pair now awaits the UK services PMI data release. The data usually triggers a big move in the Sterling pairs, given the service sector is the largest contributor to GDP.

    Across the pond, the monthly US ADP private payrolls report is due for release, which will be followed by the US ISM non-manufacturing PMI report.

    GBP/USD Technical Levels

    The immediate support is seen at 1.4400 (weekly 5-MA), under which the spot could target 1.4351 (23.6% of 1.5230-1.4079). A break lower would expose 1.4317 (10-DMA). On the other hand, a break above 1.4446 (previous day’s high) would open doors for 1.4476 (resistance on the hourly chart), which if taken out could see the pair test supply around 1.45 handle.
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