GBP/USD extends weakness below 1.4200

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Mar 10, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    The buying interest surrounding the US dollar is slowly gathering pace ahead of European open, now pushing GBP/USD further below 1.42 handle.

    GBP/USD rejected below 5-DMA at 1.4218

    The GBP/USD pair trades -0.20% lower at 1.4188, meandering near fresh session lows of 1.4183 reached few minutes ago. Fresh offers are running through the cable as the US dollar extends gains against its major peers, thanks to the renewed declines seen in the EUR/USD pair ahead of the ECB.

    Moreover, the GBP/USD pair extends to the downside also on the back of widespread nervousness in the markets, as investors remain uncertain over the ECB policy decision (rate cut/ or no rate). The ECB decision will have major impact on EUR/GBP, which will eventually have some bearing on the cable.

    Hence, attention now remains on the ECB policy announcement and Draghi’s presser, in absence of macro data from the UK docket this Thursday.

    GBP/USD Levels to consider

    The pair has an immediate resistance at 1.4216/18 (daily high/ 5-DMA), above which 1.4276/78 (Mar 8 High/ daily R2) would be tested. On the flip side, support is seen at 1.4157/44 (20 & 10-DMA), below that at 1.4103 (1h 200-SMA).
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