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GBP/USD on a minor recovery through 50 4hr sma

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 22, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Guatemala) - GBP/USD is currently trading at 1.4330 with a high of 1.4361 and a low of 1.4203.

    There were reversals across the board at the end of this week and sterling was in the mix on a recovery from 1.4078 with a break of the 50 sma on the 4hr sticks. The better risk mood is benefiting the pound, despite the less bullish outlook in the economy and Brixit fears.

    GBP/USD reverses

    The pound got a lift earlier this week when the UK labour market report showed another drop in the unemployment rate to 5.1% from 5.2%. However, earnings were more of a mixed picture. Today, retail sales ex‐autos fell 0.9% in December, and analysts at Scotiabank explained that this was well below the –0.3% consensus call, but likely due partly to adverse weather in the UK recently.

    GBP/USD levels

    The analysts at Scotiabank explained that GBP/USD short‐term technicals were neutral/bullish and cable is trying to base and given today's highs at 1.4364 and there notion that 1.4270 was key, they are looking for the 1.44 handle. "The strong bear trend evident in recent weeks remains intact, but the pound is trying to pull a little higher at least. We think gains through 1.4270/75 may allow for GBP/USD to recover to the 1.44 area in the next week or two."
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