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GBP/USD jumps above 1.39 after weak US data

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 29, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    The offered tone around USD gathered pace following a weak regional manufacturing PMI release, courtesy of which the GBP/USD pair clocked a fresh daily high of 1.3915.

    Hovers around 1.39

    The spot currently trades around 1.39 levels, but aims higher on account of a weak US data release. Chicago PMI slipped to 47.6, indicating the manufacturing sector recession took an ugly turn in February.

    However, the uptick in Cable still lacks momentum as upbeat US data released over the last week has strengthened the case for a rate hike in 2016.

    GBP/USD Technical Levels

    The immediate hurdle is seen at 1.3924 (hourly 50-MA + 76.4% Fibo expansion of July 2014 high-April 2015 low-June 2015 high), above which the pair could make a run at 5-DMA resistance of 1.40. On the other hand, a break below 1.3841 (daily low) could see the spot test psychological support at 1.38. However, below 1.3841 a major support on the chat is directly seen at 1.3654 (Mar 2009 low).
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