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GBP/USD extends recovery towards 1.4400

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 15, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Mumbai) - The GBP/USD pair is currently making recovery attempts from daily lows and now tests 1.44 handle, as a steady start to the European markets eases risk-off moods somewhat.

    GBP/USD trades below all major DMAs

    The GBP/USD pair trades -0.13% to 1.4394, recovery from session lows struck at 1.4371 in last hours. The cable remains pressured, despite a minor pullback towards 1.44 handle, on the back of weak UK fundamentals and falling oil prices.

    The pound tries hard to regain lost ground versus the greenback, although in vain, as unfavourable sentiment towards higher-yielding currencies amidst global sell-off continue to weigh. Moreover, from a wider perspective, GBP/USD is likely to remain offered as the UK’s massive current account deficits, looming Brexit concerns and lower inflation and wage-price levels.

    Meanwhile, markets continue to assess yesterday’s dovish BOE minutes, with the attention now turning towards the upcoming US session for fresh batch of US dataflow. However, BOE's credit conditions survey report release due shortly will be also watched.

    GBP/USD Levels to consider

    The pair has an immediate resistance at 1.4413/27 (1h 50-SMA/ daily high), above which 1.4441/1.4456 (5-DMA/ 1h 100-SMA) would be tested. On the flip side, support is seen at 1.4378/71 (Jan 13 & daily Low) below which it could extend losses to towards 1.4350 (Jan 12 Low).
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