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GBP/USD flirts with trend line resistance

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Dec 18, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Mumbai) - The GBP/USD’s repeated attempts to break above the trend line resistance at 1.4934 are being met with offers, although the pair stays strong around 1.4925.

    Weekly loss a done deal

    At 1.4925, the pairs trading well below its weekly opening price of 1.5218. The pair fell from the highs on concerns the BOe liftoff may not happen in 2016 on account of the Brexit vote and the slowdown in the wage growth. The bearish move gained pace after the Fed announced a hawkish 25-bps hike.

    The economic calendar in the US is light today, with just markit services PMI and regional manufacturing index due for release. Fed’s Lacker too is unlikely to say anything that shall trigger a 300-pip recovery in the pair ahead of the NY closing. Consequently, a weekly loss appears as a done deal.

    GBP/USD Technical Levels

    The immediate resistance is seen at 1.4934 (trend line resistance), above which the pair could test 1.50-1.5027 (Nov 6 low). A break higher would expose 1.5087 (61.8% of Apr-Jun rally). On the other hand, a break below 1.4888 (76.4% of Apr-Jun rally) would open doors for a drop to 1.4739 (Apr 1 low).
    For more information, read our latest forex news.
     

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