GBP/USD remains on back foot after Tuesday’s sell-off

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Apr 6, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    GBP/USD is struggling to regain poise following Tuesday’s sell-off that saw the currency pair tumbled more than 100-pips.

    Trades below 23.6% Fibo

    Cable is having a tough time moving back above 1.4165 (23.6% of 1.5230-1.3835) levels. An attempt in Asia quickly fell apart, although losses are being capped around 1.4145 levels. The data docket in UK is empty, hence trading may be erratic.

    Later in the day, Fed speak could influence overall demand for the US dollars. Next on tap would be Fed march meeting minutes release. The spot currently trades around 1.4155 levels. Cable has lost 300 pips since last Wednesday.

    GBP/USD Technical Levels

    The immediate hurdle is noted at 1.4165 (23.6% of 1.5230-1.3835), above which the spot could target 1.42. A break higher would expose 1.4252 (50% of 1.4669-1.3835). On the other hand, a break below 1.4122 (previous day’s low) would expose 1.4079 (Jan 21 low) under which losses could be extended to 1.4032 (23.6% of 1.4669-1.3835).
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