GBP/USD fades the spike above 1.3900

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 29, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    The buying interest around the sterling is now pushing GBP/USD to test fresh daily peaks near 1.3920 ahead of UK data.

    GBP/USD firmer, looks to UK releases

    In spite of today’s recovery, spot remains vulnerable and entrenched in its bearish perspective against the backdrop of the increasing uncertainty surrounding the outcome of the June referendum, meandering the area of low levels last seen in mid-2009 and with gains so far limited to the 1.4000 neighbourhood.

    Next of relevance for the pair will be UK’s Net Lending to Individuals, Consumer Credit, M4 Money Supply and Mortgage Approvals. On the other side of the Atlantic, US Pending Home Sales and Chicago PMI will grab all the attention.

    GBP/USD levels to consider

    As of writing the pair is retreating 0.17% at 1.3889 and a break below 1.3841 (multi-year low Feb.29) would expose 1.3681 (monthly low June 2001) and then 1.3653 (monthly low March 2009). On the upside, the next resistance lines up at 1.4278 (20-day sma) followed by 1.4461 (55-day sma) and finally 1.4670 (high Feb.4).
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