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GBP/USD remains at the mercy of GBP/JPY cross

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Apr 11, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    Yen remains at the center stage of the FX markets; guiding other majors like GBP/USD via action in the GBP/JPY cross.

    Cable backs off from daily highs

    The spot now trades around 1.4220 after having clocked a high of 1.4227 levels. The move is in line with GBP/JPY pair which trimmed gains from the daily high of 153.99 to trade around 153.75 levels.

    Yen bulls finally loosened their grip, but that has not been able to push USD/JPY pair above key technical hurdle of hourly 50-MA. Thus it remains to be seen if the corrective move extends in the US session or proves to be short lived.

    GBP/USD Technical Levels

    Acceptance above the hourly 200-MA level of 1.4212 would open doors for 1.4252 (50% of 1.4669-1.3835) – 1.5260 (50-DMA). A break higher would expose 1.53 handle. Conversely, failure to stay above hourly 200-MA would shift risk in favor of a drop to 1.42 under which next major support is seen at 1.4154 (38.2% of 1.4669-1.3835).
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