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GBP/USD recovery falters, turns back south

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 20, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Córdoba) - GBP/USD failed to sustain upside momentum and turned lower after a short-lived recovery attempt seen on the back of lackluster US inflation and housing data.

    GBP/USD made a marginal cycle low of 1.4124 on Wednesday but lacked follow through and briefly turned higher, reaching an intraday high of 1.4218 before faltering. At time of writing, Cable is trading at 1.4155, virtually unchanged on the day, but still at multi-year lows.

    GBP/USD broke below 1.4200 on Tuesday, for first time in nearly six years, as the pound continues to weaken amid divergent monetary outlooks with US, slowing growth in the UK and uncertainty over a possible Brexit. The pair has fallen more than 1000 pips from December highs.

    GBP/USD levels to watch

    On the downside, next supports are seen now seen at 1.4110 (Mar 30 2009 low) and 1.3843 (Mar 18 2009 low). On the other hand, immediate resistances could be found at 1.4339 (Jan 19 high), 1.4375 (10-day SMA) and 1.4400 (psychological level).
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