GBP/USD retreats from highs, tests 1.4400

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 9, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    The sterling is now losing its shine, prompting GBP/USD to deflate from session highs in the 1.4480/90 band.

    GBP/USD choppy, capped near 1.4500

    The pair has been trading in response to the alternating risk trends, meandering between a 100-pip range and with the upside limited near the 1.4500 handle. In the meantime, the risk aversion seems to have returned to the markets, prompting European equities to intensify their daily losses and spot to test lows in sub-1.4400 levels.

    Data wise in the UK, the trade deficit has come in better than expectations at £9.91 billion during December. In the US, NFIB’s Business Optimism index dropped to 93.9, while Wholesale Inventories and the API’s weekly report on crude oil stockpiles are due later.

    GBP/USD levels to consider

    As of writing the pair is losing 0.13% at 1.4408 with the next support at 1.4353 (23.6% Fibo of 1.5240-1.4079) followed by 1.4147 (low Jan.29) and then 1.4079 (low Jan.20). On the flip side, a breakout of 1.4670 (high Feb.4) would aim for 1.4694 (55-day sma) and finally 1.4796 (61.8% Fibo of 1.5240-1.4079).
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