GBP/USD recedes in early Europe after 6-day winning streak

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Mar 8, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    The bullish momentum in the GBP/USD pair stalled in the late NY session, making way for a corrective move. The spot is down in early Europe near 1.4240 levels.

    Eyes Carney speech

    Bank of England’s Mark Carney could show a greater willingness to further delay its normalization cycle during his speech on the UK’s EU-membership. Other BOE members are widely expected to do the same.

    The data docket is thinly populated in Europe and US, hence apart from Carney’s speech; the spot could be influenced by the overall demand for the US dollars.

    GBP/USD Technical Levels

    The immediate support is seen at 1.4195 (5-DMA), under which the pair could drop to 1.4134 (previous day’s low). If penetrated the pair could slide to 1.4079 (Jan 21 low). On the other hand, a break above 1.4295 (falling trend line resistance) shall open doors for 1.4330 (23.6% of 1.5930-1.3835). A break higher would expose 1.44 handle.
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