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GBP/USD stuck near confluence of Fibo levels

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 8, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    The uptick in the GBP/USD pair seen in Asia, following Friday’s drop, appears to have run out of steam around the confluence of the Fibo levels - 1.4519-1.4516 (38.2% of 1.5230-1.4079 + 23.6% of 1.5930-1.4079).

    Hovers above 1.45

    The spot is hovering above 1.45 levels in the early European session. The USD bulls made a short comeback on Friday after the data in the US showed the unemployment rate hit fresh multi year lows and the wage growth gathered pace in January.

    However, the CME data still shows a negligible probability of another 25 basis point rate hike in 2016. Hence, it remains to be seen if the USD sell-off resumes or the Cable drops below 1.45.

    GBP/USD Technical Levels

    The immediate resistance is seen located at 1.4516-1.4519 (23.6% of 1.5930-1.4079 + 38.2% of 1.5230-1.4079), above which the pair could rise to 1.4590 (Friday’s high). On the other hand, a break below 1.4502 (5-DMA) could shift risk in favor of a drop to 1.4443 (38.2% of 1.4079-1.4668).
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