GBP/USD: Bulls losing grip, tests confluence of Fibo support

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 5, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    The offered tone around Sterling gathered traction in early Europe, pushing the GBP/USD spot lower to strong support zone of 1.4519-1.4516 (38.2% of 1.5230-1.4079 + 23.6% of 1.5930-1.4079).

    Hovers around 1.4520

    The spot currently trades around 1.4520. The bullish effect of a slightly hawkish BOE on Sterling was short-lived as the pair is back to trade around the previous daily low of 1.4529.

    The focus now is on the US non-farm payrolls report, which could alter Fed rate hike bets and make or break the US dollar. As of now, the CME data indicates the Fed is unlikely to raise rates by another 25 bps in 2016.

    GBP/USD Technical Levels

    The immediate resistance is seen at 1.4567 (hourly 50-MA), above which the prices could test 1.4590 (daily high). On the other hand, a break below 1.4519-1.4516 (38.2% of 1.5230-1.4079 + 23.6% of 1.5930-1.4079) could see the pair slide to 1.4445 (Feb 1 high).
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