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GBP/USD: Offered again near 5-DMA

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 19, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - The GBP/USD pair ran into offers again near 5-DMA, a pattern that has been in place since the beginning of the current year.

    Sits above 1.43

    The pair turned lower from the high of 1.4340; which is just short of the 5-DMA at 1.4351 and now trades around 1.4305 levels. The currency was already on the rise ahead of the CPI data and extended gains by 20 odd pips after the data showed an uptick in the core inflation.

    The focus now is on the BOE Carney’s speech. Traders would keep an eye on Carney’s take on wage growth and economic slowdown and accordingly adjust BOE rate hike bets.

    GBP/USD Technical Levels

    The immediate resistance is seen at 1.4351 (5-DMA + Jan 12 low), ahead of the major hurdle at 1.4439 (hourly 200-MA). A break higher would expose 1.4473 (23.6% of 1.5240-1.4237). On the other hand, support is seen at 1.4275 (hourly 50-MA), under which the pair could drop to 1.4227 (May 2010 low).
    For more information, read our latest forex news.

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