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GBP/USD: muted reaction to dismal US data

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 15, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Mumbai) - The weaker-than-expected US data failed to have any positive impact on the GBP/USD pair, which continues to hover near the daily lows.

    Rejected at 1.4355

    The pair jumped 20-odd pips to 1.4355 immediately after the release of the weak US data only to fall back to 1.4330 levels. The advance retail sales contracted 0.1% as expected in December, however, the retail control group number and NY manufacturing index missed estimates.

    Still, the oversold GBP failed to strengthen. Moreover, the weak data pushed the US index futures further into losses and increased demand for EUR. Consequently, the uptick in the EUR/GBP cross kept the cable under pressure.

    GBP/USD Technical Levels

    The immediate resistance is seen at 1.4372 (76.4% of Jan 09 low-July 14 high), above which the gains could be extended to 1.44 levels. On the other hand, a break below 1.43 would expose 1.4227 (May 2010 low).
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