GBP/USD: gains are slow to come despite weak US data

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 28, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - The GBP/USD only managed to gain 20-odd pips to trade around 1.4325 despite the horribly weak monthly US durable goods orders report.

    Gains capped by jobless claims?

    The pair may be having a hard time rising as the weekly initial jobless claims dropped more than expected to 278K from prior week’s 293K figure. Still, it is uncertain as to why the pair has failed to respond positively to a 5.1% drop in the headline US durable goods orders.

    Ahead in the day, the spot could be influenced by the US housing data. Meanwhile, broader market sentiment may have a higher say since the pair is tracking equities as of now.

    GBP/USD Technical Levels

    The spot jumped to 1.4330 only to fall back quickly to 1.4310 levels. The immediate resistance is seen at 1.4351 (23.6% of 1.5230-1.4079), above which the pair could target 1.44 levels. On the other hand, a break below hourly 100-MA at 1.4281 would open doors for a sell-off to 1.4231 (daily low).
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