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GBP/USD hits new session lows as USD recovery picks-up pace

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Mar 11, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    The post-ECB recovery in the USD is seen gathering steam in the European session, now pushing GBP/USD back to daily lows.

    GBP/USD faces supply near 1.4285-90 zone

    The GBP/USD pair trades -0.14% lower at fresh daily lows of 1.4261. The cable was hit by a fresh offer-wave over the last hour after the US dollar regained ground somewhat versus a basket of six major currencies, following ECB induced massive slide seen Thursday. The US dollar index now gains 0.20% to trade around 96.40, and remains on a gradual recovery mode.

    The GBP/USD pair remains unperturbed by the renewed optimism seen on the European indices and keeps the offered tone intact, as markets now await the UK trade figures for fresh impetus. Markets expect the deficit to have ballooned slightly to GBP3 billion in Jan from GBP2.7 billion seen in Dec.

    Besides, a set of second-liner data in the form of the construction output and consumer inflation expectations from the UK data will be also reported ahead of the US import prices index.

    GBP/USD Levels to consider

    The pair has an immediate resistance at 1.4296/1.4300 (hourly R3/ psychological levels), above which 1.4322/66 (Mar 10 High/ daily R2) would be tested. On the flip side, support is seen at 1.4224/00 (1h 100-SMA/ round number), below that at 1.4154/47 (20-DMA/ 1h-200 SMA).
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