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GBP/USD: Bulls unstoppable post-GDP, 1.4350 on sight

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 28, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Mumbai) - The bid tone around the GBP keeps growing bigger as we head into mid-Europe, now pushing GBP/USD to fresh session highs above 1.43 handle.

    GBP/USD trades above all major MAs on hourly sticks

    The GBP/USD pair trades 0.62% higher at 1.4324, easing-off fresh session highs reached at 1.4335 some minutes ago, heading for a test of 1.43 handle. The pound regained momentum after the previous drop and witnessed fresh buying interest over the last hours following the release of upbeat UK Q4 GDP report.

    The preliminary estimate of the UK's Q4 GDP growth showed that economy picked up pace to 0.5%, from a downwardly revised 0.4% in Q3 and matched forecasts for 0.5% growth.

    Moreover, the cable remains supported amid broad based US dollar weakness after the Fed failed to impress the USD bulls. The USD index drops -0.13% to 98.90, having broken below the 99 barrier. Further, BOE Chief Economist, Andrew Haldane’s optimistic comments on the UK economy delivered earlier this week, also keeps the sentiment around the cable buoyed.

    Later today, the US durable goods numbers for December will be in focus, with markets expecting a decline of 0.5% for December.

    GBP/USD Levels to consider

    The pair has an immediate resistance at 1.4359/ 67 (Jan 27 & 26 High), above which 1.4400/09 (round number/ daily R2) would be tested. On the flip side, support is seen at 1.4283 (5-DMA) below which it could extend losses to towards 1.4245 (1h 200-SMA/ 10-DMA).
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