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GBP/USD hovers around hourly 50-MA

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 21, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Mumbai) - The GBP/USD pair is trading around the hourly 50-MA level of 1.4190 in early Europe after having ended the three-day losing streak on Wednesday.

    Eyes ECB rate decision

    The data calendar in the UK and US is empty, hence, the ECB rate decision could be the one to influence the Cable via sharp moves in the EUR/GBP cross. The selling interest in the EUR/GBP may spike if the ECB President Draghi hints at a more monetary easing in the near future.

    Meanwhile, technical factors may play a role as well. The oversold RSI on the daily and the intraday timeframes has left the doors open for a technical correction in the pair.

    GBP/USD Technical Levels

    The immediate resistance is seen at 1.4219 (previous day’s high), above which the pair could test 1.4348 (hourly 200-MA). On the other hand, a break below 1.4125 (previous day’s low) would open doors for a drop 1.40 handle.
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