GBP/USD reverses a brief dip to 1.4275

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 18, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - The GBP bulls are seen losing grip in recent dealings, with GBP/USD gradually reversing the spike to 1.4322 highs and now slips back on the 1.42 handle.

    GBP/USD fails to resist 1.43 handle

    The GBP/USD pair trades 0.25% higher to 1.4294, having posted fresh session highs at 1.4322. The pound recedes gains versus its American counterpart as the greenback picks-up pace against its six major competitors, with the DXY now advancing 0.15% to 99.13.

    Adding to the downward pressure on the cable, the lacklustre performance on the European stocks amid thin trades, dampens investors sentiment and diminishes the bids for risk higher-yielding currencies such as the GBP.

    Amid a lack of economic news in the day ahead, focus now shifts towards tomorrow’s UK CPI data. While sentiment on the global equities and the oil price action will continue to dominate.

    GBP/USD Levels to consider

    The pair has an immediate resistance at 1.4322/30 (daily high/ 5-DMA), above which 1.4389/1.4400 (1h 100-SMA/ round number) would be tested. On the flip side, support is seen at 1.4266 (daily pivot) below which it could extend losses to towards 1.4248 (multi-year low).
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