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GBP/USD struggles to extend gains beyond 1.4520

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 12, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    The GBP/USD pair finally broke higher from the Asian consolidation box and now tries another attempt to advance through 1.4530 region, daily highs.

    GBP/USD back below 10-DMA

    The GBP/USD pair trades 0.19% higher at 1.4505, having failed once again near 1.4520 arena. The cable caught fresh bid tone over the last hours, extending the upside beyond 1.45 handle, although lacks momentum as 1.4520 acts as a strong resistance.

    The bid tone in the GBP/UJSD pair is also supported by the risk-on rally seen in the European markets, after having slumped to multi-month lows the day before. Further, solid recovery posed by the black gold also continues to boost the sentiment and markets now seek to take the yield advantage, sending GBP/USD higher.

    Looking ahead, the second-liner data from the UK, construction output will be released shortly, followed by crucial economic data from the US - retail sales and consumer sentiment numbers.

    GBP/USD Levels to consider

    The pair has an immediate resistance at 1.4530/46 (daily high/ 50-DMA), above which 1.4565/70 (Feb 11 High/ daily R1) would be tested. On the flip side, support is seen at 1.4466 (1h 20 & 100-SMA) below which it could extend losses to towards 1.4400/1.4392 (round number/ 20-DMA).
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