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GBP/USD finds support around 38.2% Fibo despite weak UK data, jumps to 1.45

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

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    The GBP/USD spot managed to recover quickly from around 1.4443 (38.2% of 1.4079-1.4668) despite weaker-than-expected UK manufacturing and industrial production figures.

    Confluence of key technical support intact

    Sterling, in a knee jerk reaction to weaker-than-expected data, fell to 1.4436 before quickly recovering to trade around 1.45 levels. This means the confluence of key technical support around 1.4445 (10-DMA + hourly 200-MA + hourly 50-MA) stays intact.

    Traders now await Fed’s Yellen testimony. Markets would be interested to hear Yellen’s take on the risk-off in the markets and whether the Fed is still considering a rate hike this year.

    GBP/USD Technical Levels

    The immediate resistance is seen at 1.4513-1.4519 (5-DMA and 23.6% of 1.5930-1.4079 + 38.2% of 1.5230-1.4079), above which the spot could target 1.4546 (Feb 8 high). On the other hand, a break below confluence of support around 1.4445 (10-DMA + hourly 200-MA + hourly 50-MA) would open doors for a drop to 1.44 levels.
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