GBP/USD: offered at confluence of Fibo levels, back to square one

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 16, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    The GBP/USD pair failed to take out 1.4516-1.4519 (23.6% of 1.5930-1.4079 + 38.2% of 1.5230-1.4079) and fell back to 1.4440; levels seen in early Europe.

    Weak core inflation weighs

    Sterling was offered after the data in the UK showed the core inflation weakened in January. The drop in the European equity markets also strengthened the offered tone around GBP.

    The spot had jumped to 1.4516 levels ahead of the UK CPI after the latest Brexit poll revealed a clear majority in favor of keeping the EU membership. The US economic calendar is light; hence the pair is at the mercy of the broader market sentiment.

    GBP/USD Technical Levels

    The immediate support is seen at 1.4413 (previous day’s low), which if taken out shall open doors for a drop to 1.4383 (Feb 11 low). On the other hand, a break above immediate hurdle at 1.4443 (38.2% of 1.4079-1.4668) could see the spot test offers at 1.4493 (hourly 200-MA).
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