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GBP/USD jumps above 1.42 after US data release

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

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    At 1.4225, GBP/USD is having a good time after the data in the US showed a sharper slowdown personal spending.

    Rises amid thin volumes

    The bulls could take the rise in Cable with a pinch of salt, given the volumes are thin on account of Easter Monday holiday in the UK. Furthermore, Brexit fears remain intact and treasury yields have hardly reacted to the dismal personal spending release in the US.

    Pair was hovering around 1.4170 ahead of the data release and is now eyeing 1.4252 (50% of 1.4669-1.3835) levels. Next on cards is US new home sales number and Dallas Fed manufacturing index release.

    GBP/USD Technical Levels

    Acceptance above confluence of technical levels 1.4252 (50% of 1.4669-1.3835 + 10-DMA) would expose 50-DMA at 1.4267, which if violated would expose 1.43 handle. Conversely, a drop below 1.4197 (rising trend line support) would shift risk in favor a drop to 1.4154 (38.2% of 1.4669-1.3835) – 1.4165 (1.5230-1.3835).
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