GBP/USD: Off lows, but still below 1.42

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Mar 23, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    The bullish momentum in the USD stalled, helping the GBP/USD pair move off lows, but Brexit fears ensure the spot stays below 1.42.

    Hovers around 1.4180

    Spot currently trades around 1.4180 levels after having clocked a session low of 1.4155 levels. Greenback was ruling the roost earlier today after hawkish talks from the Fed officials pushed up April/June rate hike bets.

    Meanwhile, Brexit fears also weighed over Pound and continue to do so; hence the recovery is failing to gain momentum beyond 1.4180 levels. The focus now is on the US new home sales release.

    GBP/USD Technical Levels

    Given the pair trades above 1.4175 (50% of 1.3835-1.4515) levels, the spot stands exposed to 1.42 handle, above which the pair could target 1.4228 (daily high). On the flip side, a break below at 1.4138 (Mar 15 low) would expose next support at 1.4117 (Mar 10 low), which if breached would mark short-term bullish invalidation and shift risk in favor of a drop to 1.4079 (Jan 21 low).
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