GBP/USD challenges lows near 1.4650

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 6, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Edinburgh) - The weakness around the sterling remains well and sound on Wednesday, dragging GBP/USD to challenge recent multi-month lows in the mid-1.4600s.

    GBP/USD focus on PMI

    Spot continues to trade on a soft note in levels last seen in April 2014 around 1.4650/40, dragged lower by the generalized sentiment towards the greenback. The pound will remain under pressure however, as the always relevant UK Services PMI is due later. Market consensus expects the reading to come a tad lower for the month of December, at 55.6 vs. November’s 55.9.

    On the dollar’s side, US ADP report is due seconded by Factory Orders and the more relevant FOMC minutes.

    GBP/USD important levels

    The pair is now retreating 0.11% at 1.4653 and a breach of 1.4632 (low Mar.18) would open the door to 1.4563 (low Apr.13) and then 1.4500 (psychological level). On the flip side, the next up barrier aligns at 1.4947 (high Dec.24) ahead of 1.5000 (psychological level) and finally 1.5087 (55-day sma).
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