GBP/USD slumps below 1.4300, US GDP eyed

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 29, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Edinburgh) - The sterling is now falling faster vs. the greenback, dragging GBP/USD below the 1.4300 handle.

    GBP/USD down from 1.4410

    After hitting highs above the 1.4400 mark in overnight trade, spot met a wave of selling pressure and is now returning to the 1.4290 area against the backdrop of a better sentiment surrounding the US dollar.

    The rebound from multi-year lows in sub-1.4100 levels seems to have thus found some strong resistance just above 1.44 the figure, as market expectations of a later than expected rate hike by the BoE and deteriorating prospects for the UK economy continue to linger.

    GBP/USD relevant levels

    As of writing the pair is losing 0.38% at 1.4301 facing the next support at 1.4171 (low Jan.26) followed by 1.4079 (multi-year low Jan.21) and then1.4049 (monthly low feb.2009). On the other hand, a break above 1.4431 (high Jan.15) would open the door to 1.4522 (38.2% Fibo of 1.5240-1.4079) and then 1.4796 (55-day sma).
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