GBP/USD supported by key fib in Asia

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Nov 3, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - The GBP/USD pair bounced-off from the support at 1.5414 (23.6% of 1.5107-1.5509) in Asia, but the gains remain capped ahead of the UK construction PMI report due later today.

    Rejected again near 1.55

    Sterling once again ran into offers around 1.55 handle on Monday despite a stellar UK manufacturing PMI report. From Oct 14 to Oct 22, the cable made repeated attempts to take out 1.55, but failed each time, which eventually led to a drop to 1.5250 levels by Oct end.

    The focus today is on the UK construction PMI report, which is expected to show the activity expanded at a slower rate in October.

    GBP/USD Technical Levels

    At 1.5425, the pair faces a major hurdle at 1.5480 (100-DMA)-1.55, above which the pair could rise to 1.5568 (38.2% of Jul 14-Apr 15 plunge). On the other side, a break below 1.5414 (23.6% of 1.5107-1.5509) would open doors for a drop to 1.5379 (38.2% of 1.5819-1.5107) and 1.5355 (38.2% of Oct high-low).
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