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GBP/USD challenges 1.4400 ahead of UK CPI

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 16, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    The sterling is now accelerating its daily leg lower, sending GBP/USD to test lows in the vicinity of the ley support at 1.4400.

    GBP/USD focus on UK releases

    The pair has dropped over a sent since yesterday’s tops in the 1.4540 area following the strong recovery of the greenback and in spite of the risk-on environment.

    The pair’s upside momentum appears somewhat capped below the 1.4600 handle, as market participants keep adjusting the trade to expectations of a later rate hike by the BoE while ‘Brexit’ fears continue to linger.

    It will be a key session for GBP in light of UK’s inflation figures due later. Market consensus sees consumer prices to have advanced at an annual pace of 0.3% during January.

    GBP/USD levels to consider

    As of writing the pair is retreating 0.20% at 1.4405 and a break below 1.4353 (23.6% Fibo of 1.5240-1.4079) would aim for 1.4171 (low Jan.26) and then 1.4147 (low Jan.29). On the upside, the next resistance lines up at 1.4558 (55-day sma) followed by 1.4670 (high Feb.4) and finally 1.4796 (61.8% Fibo of 1.5240-1.4079).
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