GBP/USD struggles to take out 1.43 despite upbeat UK data

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Mar 11, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    UK trade deficit narrowed in January, but failed to light a fire under GBP/USD pair, which struggles to take out 1.43 handle.

    Supported by 50% Fibo

    Cable ran into bids around 1.4252 (50% of 1.4669-1.3835) and recovered losses seen in early trading. The pair was trading on a front foot around 1.4285 and hit the daily high of 1.4297 post UK data release, before deflating back to 1.4280.

    UK’s Total trade deficit in February narrowed to GBP 3.459 billion, but was slightly higher than expected figure of GBP 3.00 billion. Goods trade deficit and trade deficit with non-EU both narrowed more than expected.

    Next on cards is the US export and import price index. Traders would also keep a close watch on the action in the EUR/USD pair.

    GBP/USD Technical Levels

    The immediate hurdle is seen at 1.4317 (50-DMA) – 1.4330 (23.6% of 1.5930-1.3835), above which the spot could target 1.4405 (Feb 19 high). On the other hand, a break below immediate support at 1.4252 (50% of 1.4669-1.3835) would expose 1.4173 (Mar 8 low).
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