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GBP/USD recovers PMI-led losses, eyes 1.40 ahead of ADP

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Mar 2, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    Having bottomed out at 1.3915 over the last hour, the GBP/USD pair picked-up significant strength and now heads towards 1.4000.

    GBP/USD clings to 5-DMA support at 1.3915

    The GBP/USD pair trades 0.24% higher at 1.3988, recovering sharply from session lows struck at 1.3915, where the 5-DMA intersects. The cable staged a solid recovery from dismal UK construction PMI-induced losses and now extends further on the bids.

    The major looks to reclaim 1.40 barrier ahead of the US ADP report, as the US dollar is seen receding gains against it major peers on the back of expectations that the US employment numbers will disappoint markets today and weigh down on the buck.

    GBP/USD Levels to consider

    The pair has an immediate resistance at 1.4021 (1h 200-SMA), above which 1.4045/50 (Feb 26 High/ psychological levels) would be tested. On the flip side, support is seen at 1.3915 (5-DMA/ daily low), below that at 1.3852 (Feb 26 Low).
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