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GBP/USD: stuck at key fib level

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 27, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Mumbai) - The GBP/USD is having a hard time taking out the resistance at 1.4351 (23.6% of 1.5230-1.4079) after having rallied more than 100 pips on Tuesday.

    Hovers around 1.4340

    The spot trades in the sideways manner around 1.4340 levels. The oversold British Pound strengthened on Tuesday as the recovery in oil prices and the risk-on in equities opened doors for a correction in the risk assets.

    The investors now await the FOMC rate decision. There is consensus in the markets that the FOMC would take note of the recent financial market turmoil and play down the rate hike bets.

    GBP/USD Technical Levels

    The immediate resistance is seen at 1.4351 (23.6% of 1.5230-1.4079), above which the pair could test 1.4428 (Jan 15 high). A break higher would expose 1.4519 (38.2% of 1.5230-1.4079). On the other hand, a break below 1.43 would open doors for a drop to 1.4253 (5-DMA), under which the losses could be extended to 1.42 levels.
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