GBP/USD off lows, but weak

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

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    GBP/USD has recovered from the low of 1.4410, but remains well into the negative territory as dollar bears are having a breather following two day USD selling frenzy.

    Poised for a weekly gain?

    At 1.4440, the pair is sitting well above its weekly opening price of 1.4381. However, 60-pip could happen in a matter of seconds, pushing the pair into a negative territory on weekly basis.

    Still, the odds of a drop are low as of now, given the economic calendar is empty and there is very little reason for a sudden change in sentiment in favor of the US dollar. Profit taking on USD shorts ahead of the weekend is the only factor that might see the pair drop 60-pip from here.

    GBP/USD Technical Levels

    The immediate hurdle is seen at 1.45 ahead of a major resistance at 1.4533 (50% of 1.5230-1.3835) and 1.4578 (Feb 10 high). On the other hand, a breakdown of immediate support at 1.4436 (Mar 11 high) would expose 1.44 and 1.4350 (61.8% of 1.4669-1.3835).
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