GBP/USD recovers losses, back at 1.4500

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

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    The GBP/USD pair has almost reversed a spike to session highs just ahead of 5-DMA and now flirts with 1.45 handle as risk sentiment deteriorates amid mixed trading on the European equities.

    GBP/USD turns negative near 1.4500

    The GBP/USD pair trades modestly flat at 1.4497, recovering quickly from fresh session lows of 1.4486 reached last minutes. The major came under renewed selling pressure as a fresh risk-aversion wave gripped the markets following the subdued performance on the European stocks. In times of risk-off environment, markets give up higher-yielding currencies such as the GBP, in favour of safe-haven assets.

    Moreover, the US dollar manages to keep gains versus its major peers as the upbeat US job data continue to underpin, and therefore adds to the bearish pressure on the cable.

    Amid a data-empty UK docket today, markets now focus on the US labour market conditions report for fresh impetus amid ongoing recovery in the black gold.

    GBP/USD Levels to consider

    The pair has an immediate resistance at 1.4545/47 (5-DMA/ daily high), above which 1.4600 (round number) would be tested. On the flip side, support is seen at 1.4450/42 (Feb 2 Low/ 10-DMA) below which it could extend losses to towards 1.4412(1h 200-SMA).
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