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GBP/USD: Bulls taking a breather after 5-day rally

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Mar 7, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    The GBP/USD pair is trading in the sideways manner above 1.42 levels after rallying for five consecutive sessions.

    Dollar stays on back foot

    The US dollar remains on a back foot amid rally in oil prices and due to weak wage growth figures released on Friday. The payrolls blew past expectations on Friday, providing a temporary boost to the US dollar; however, a 0.1% m/m drop in the wages triggered a broad based USD sell-off.

    Consequently, GBP/USD rose from 1.4107 to 1.4248 levels, before ending the week at 1.4222 levels. The spot is now trading around 1.4210 levels.

    GBP/USD Technical Levels

    The immediate resistance is seen at 1.4252 (50% of 1.4669-1.3835), above which the pair could test 1.4297 (weekly 10-MA). A break higher would expose 1.4361 (50-DMA). On the other hand, a break below 1.42 could see the pair test post payrolls low of 1.4107. A break lower would expose 1.4032 (23.6% of 1.4669-1.3835).
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