GBP/USD ignores US data, stays below 1.41

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Apr 7, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    A better-than-expected US jobless claims data did little to move GBP/USD, which stays below 1.41 handle amid Brexit fears and sharp drop in GBP/JPY cross.

    Sterling three-month implied volatility rises above 16%

    The cost of protection against a big drop in Sterling rose a step further today, indicating traders are worried about the volatility. The 3-month implied volatility, which includes June vote, rose above 16% for the first time in six-years. The gauge is trading within a striking distance from May 2010 high of 16.91%.

    The data released in the US, thus received little attention from Sterling traders. The US data docket is thin now; hence the focus is on Yellen speech.

    GBP/USD Technical Levels

    The pair currently trades around 1.4080. The immediate hurdle is noted at 1.4124 (hourly 50-MA), above which the spot could target 1.4200 (hourly 100-MA). A break higher would expose hourly 200-MA at 1.4256. Conversely, acceptance below 1.4079 (Jan 21 low) could send the pair back to 1.4032 (23.6% of 1.4669-1.3835). Next major support is seen at 1.40.
    For more information, read our latest forex news.

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