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GBP/USD offered around Monday’s high, back below 1.44

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 2, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Mumbai) - The GBP/USD pair ran into offers around Monday’s high of 1.4445 levels and fell back below 1.44, marking a double top formation on the intraday technical charts.

    Risk off weighs

    The major equity index futures in the US point to worsening of the risk aversion ahead. Even the major European indices are now down 2%. Consequently, the British Pound failed to take out Monday’s high and fell back to trade around 1.4380 levels.

    The EU/UK draft deal led to a short-term bullish move, however, the focus is back on the broader market sentiment. Apart from the stock market sentiment, the pair could influence by Fed George’s comments.

    GBP/USD Technical Levels

    A break above the immediate resistance at 1.4445 (previous day’s high) would open doors for a rise to 1.4476 (strong resistance on the hourly chart), which if taken out could see the pair test 4516 (23.6% of 1.5930-1.4079). On the other hand, the pair could find immediate support at 1.4351 (23.6% of 1.5230-1.4079) could see the pair drop to 1.4324 (5-DMA). A break lower would expose 1.4292 (10-DMA).
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