GBP/USD: capped by the 100 SMA on good recovery

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Dec 23, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Guatemala) - GBP/USD is currently trading at 1.4870 with a high of 1.4902 and a low of 1.4817.

    GBP/USD rallied from the 1.48 handle and met resistance at the hourly 100 SMA at 1.4883. The dollar and markets are not correlating to much of a degree in these last sessions of trade and it is better off looking to 2016. The Oil has spiked today 4% which aids the pound, but moves are exaggerated and out of sync.

    In respect of data, we have seen US PCE and durable goods strong today and US GDP positive in the US yesterday. The UK's GDP was poor, but the market shrugged that off as well, perhaps taking comfort from a narrower than forecast current account deficit (GBP17.5bn versus expectations of -21.5bn). All these will be factored into 2016 more so and the UK will be scrutinised for prospects of a BoE diverging away from the Fed who have already started to show the market that they mean business.

    This was all discussed when FXStreet hosted a special event about what 2016 might hold for the Forex traders. The panelists were Ashraf Laidi, Boris Schlossberg, Adam Button and Valeria Bednarik. Today, we want to share with you the recording of the whole show. Watch now and look out for commentary around Brexit nerves, BoE and the Fed's dilemma.

    GBP/USD levels

    Technically, analysts at Scotiabank explained that the broader trend lower in GBP/USD remains intact. "A succession of lower lows and lower highs on the daily chart define the essence of a basic, bear trend. Cable found support in the 1.4800/05 area. And short-term price action looks a little more constructive and may allow for minor GBP/USD gains to extend above 1.4900/10 resistance towards 1.4975."
    For more information, read our latest forex news.

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