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GBP/USD fades the recovery post-UK data

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

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    The British pound has lost the earlier upside momentum following the auspicious releases in the UK docket, with GBP/USD returning to the 1.4100 neighbourhood.

    GBP/USD back around 1.4100 ahead of FOMC

    The pair has attempted a rebound to the 1.4130 area after UK’s labour market figures have surprised markets to the upside today. However, the bull run proved to be ephemeral, relegating spot back to the proximity of the 1.4100 handle ahead of the US docket.

    In fact, February’s US inflation figures tracked by the CPI is due next (0.9% YoY exp.) preceding the more significant FOMC gathering and press conference by Chairwoman J.Yellen. Market expectations remain biased towards a no-hike today, although the expected hawkish tone could open the door for a rate hike at the April or June meeting.

    GBP/USD levels to consider

    As of writing the pair is losing 0.26% at 1.4115 and a breakdown of 1.4028 (23.6% Fibo of 1.4670-1.3833) would aim for 1.4000 (psychological level) and finally 1.3836 (multi-year low Feb.29). On the other hand, the initial hurdle lines up at 1.4249 (50% Fibo of 1.4670-1.3833) ahead of 1.4330 (55-day sma) and then 1.4438 (high Mar.11).

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