GBP/USD off highs, breaks below 1.4300

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 18, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    The sterling is now losing its shine vs. the dollar, dragging GBP/USD back below the 1.4300 handle.

    GBP/USD eyes on risk, data

    The pair has faded the initial spike to the 1.4310/15 band during overnight trading, returning to sub-1.4300 levels in response to a pick up in the risk aversion ahead of the opening bell in London.

    While the risk appetite trends remain poised to drive the sentiment in the near-term, tomorrow’s Retail Sales figures in the UK economy will be closely watched against the backdrop of the recent deterioration in key UK economic indicators.

    GBP/USD levels to consider

    As of writing the pair is retreating 0.03% at 1.4283 and a break below 1.4200 (psychological level) would aim for 1.4171 (low Jan.26) and then 1.4147 (low Jan.29). On the upside, the next resistance lines up at 1.4398 (20-day sma) followed by 1.4522 (38.2% Fibo of 1.5240-1.4079) and finally 1.4620 (55-day sma).
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