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GBP/USD strengthens in Asia, hovers around key Fib level

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Oct 7, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Mumbai) - The softness in the USD remains intact in Asia today, pushing the GBP/USD pair to a session high of 1.5257 levels.

    Hovers around 50% Fib level

    The spot now trades around 1.5248, which is the 50% Fib retracement of the April-June uptrend. The pair spiked in the early NY session on Tuesday after US reported a sharp drop in exports and a rise in the trade deficit in August.

    The focus now shifts to the UK industrial and manufacturing production figures, which are likely to show the activity rebounded in August. The data is likely to set the tone on the GBP/USD ahead of tomorrow’s Bank of England rate decision.

    GBP/USD Technical Levels

    A rise above 1.5248 (50% of Apr-June rally), could open doors for a rally to 1.5319 (200-DMA). The key fib level of 1.5248 coincides with the resistance of the expanding triangle formation seen on the daily chart from mid-July to Aug end. On the lower side, a failure to take out 1.5248, could expose 1.5170 area, followed by 1.5107 (Sep 30 low).
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