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GBP/USD: correction gathers pace on upbeat UK CAD figure

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

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Mumbai) - The Sterling bears have loosened their grip following an upbeat UK Q3 current account deficit (CAD) figure, thereby making way for a much awaited technical correction in the GBP/USD pair.

    At fresh daily highs

    The pair clocked a high of 1.4873 levels; above the hourly 50-MA at 1.4865 levels. The worsening UK current account deficit has been repeatedly cited as a major issue of late. Consequently, a slower-than-anticipated rise in the Q3 CAD was a relief.

    The upbeat CAD release also overshadowed the downward revision of the Q3 GDP number. At the moment, the pair appears poised to end the seven day losing streak. However, a turn lower cannot be ruled out after the US data release – personal income and spending number, durable goods orders, new home sales.

    GBP/USD Technical Levels

    At 1.4865, the immediate resistance is seen at 1.4887 (hourly 100-MA), above which the spot could target 1.4900 (5-DMA). On the other hand, a failure to sustain above 1.4865 (hourly 50-MA) could see the pair revisit 1.4805 (previous day’s low).
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