GBP/USD rebounds from 23.6% Fibo of February sell-off

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Mar 3, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    The GBP/USD found takers at 1.4032 (23.6% of Feb high-low + 10-DMA) despite a horribly weak UK services PMI figure.

    Awaits US data

    The recovery to 1.4070-1.4080 levels is surprising since the UK services PMI printed at lowest level since April 2013. The spot was trading around 1.4055 levels heading into the data releases and extended losses to 1.4032 levels before recovery set-in.

    The traders now look to the Us ISM non-manufacturing data due later today. Apart from the headline figure, the traders would like to see if the service sector employment strengthened in February.

    GBP/USD Technical Levels

    The immediate hurdle is seen at the daily high of 1.4106, which if taken out could see the spot test 1.4125 (Jan 20 low). A break higher would expose 1.4165 (23.6% of 1.5230-1.3835). On the lower side, 1.4032 (10-DMA + 23.6% of Feb high-low) remains a strong support. A break lower would expose major support levels seen at 1.40 and 1.3955 (hourly 100-MA).
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