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GBP/USD recovery heading to 20 dma?

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

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    GBP/USD is currently trading at 1.4143 with a high of 1.4152 and a low of 1.4031.

    GBP/USD has continued on the recovery from recent lows of 1.3834 and has broken up through 10 dma at 1.4040. The nonfarm payrolls is the main event this week and while the US ISM non-manufacturing figure came in better than expected, the details behind the headline shows that the employment index fell to 49.7 in Feb and is in contraction from January figure of 52.1.

    GBP remains vulnerable on ‘Brexit' – Westpac

    In respect of the pound, the underlying bearish tone should keep the bulls in check within this recovery into the 1.40 and recent ranges. "“Inability to capitalise on notably stronger UK wages and retail sales data last week confirm poor underlying health of the currency,” as noted by analysts at Westpac.

    GBP/USD levels

    Technically, GBP/USD has penetrated the January low at 1.4083 and targets the 20 day ma at 1.4233. "We suspect rallies will remain shallow and maintain our downside target remains 1.3502 the 2009 low. Below 1.3500 our primary target will be 1.2750 the 78.6% retracement at 1985," explained Karen Jones, chief analyst at Commerzbank.
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