GBP/USD subdued in the low-1.4500s

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 5, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    The demand for the sterling remains subdued on Friday, relegating GBP/USD to trade in red figures in the 1.4530/25 band for the time being.

    GBP/USD weaker ahead of NFP

    The pair is retreating for the second consecutive session so far after being rejected from yesterday’s tops at 1.4670. However, despite today’s drop, spot is closing the week with gains after five consecutive pullbacks, helped by a significant retracement in the greenback.

    It seems spot is still suffering the dovish tone struck by the BoE at its Quarterly Inflation Report on Thursday, along with the unanimous MPC vote favouring an unchanged monetary policy, all collaborating with renewed market expectations of a rate hike in mid-2017.

    GBP/USD levels to consider

    As of writing the pair is down 0.40% at 1.4527 with the next support at 1.4353 (23.6% Fibo of 1.5240-1.4079) followed by 1.4147 (low Jan.29) and then 1.4079 (low Jan.20). On the other hand, a breakout of 1.4670 (high Feb.4) would aim for 1.4730 (55-day sma) and finally 1.4796 (61.8% Fibo of 1.5240-1.4079).

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