GBP/USD turns negative near 1.4430

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 13, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Edinburgh) - The British pound has surrendered initial gains vs. its American peer today, now sending GBP/USD to the area of 1.4430.

    GBP/USD upside halted ahead of 1.4480

    The sterling has reverted the initial positive momentum that pushed the pair to session highs near 1.4480 during the European morning, as the risk appetite seems to be now taking a breather.

    Disappointing results from UK’s industrial sector on Tuesday along with a pick up in yield spreads between Gilts and US Treasuries have hit GBP yesterday, dragging the pair to fresh multi-year lows in the 1.4350 area.

    Next of relevance for the pair will be tomorrow’s BoE MPC meeting and subsequent minutes, expected to show a dovish tone.

    GBP/USD key levels

    The pair is now losing 0.07% at 1.4429 and a breakdown of 1.4352 (low Jan.12) would expose 1.4346 (low Jun.8 2010) and then 1.4229 (2010 low May 20). On the flip side, the next resistance aligns at 1.4739 (20-day sma) followed by 1.4947 (high Dec.24) and finally 1.5012 (55-day sma).
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