GBP/USD turns positive ahead of UK data

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Mar 9, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    The bid tone around Sterling strengthened, pushing the GBP/USD pair higher on the day to 1.4222 levels ahead of the UK manufacturing production data.

    Supported by 23.6% Fibo level

    Pair flirted with 1.4178 (23.6% of 1.3835-1.4284) in Asia and early Europe, before turning higher. The recovery stalled for a few minutes around 1.42 for a few minutes, before the pair chewed through offers to turn positive on the day.

    The uptick could be attributed to markets pricing-in a positive number in advanced, given the January manufacturing PMI had printed at three-month high.

    GBP/USD Technical Levels

    The immediate resistance is seen at 1.4252 (50% of 1.4669-1.3835) – 1.4260 (trend line resistance), above which the spot could test 1.4284 (previous day’s high). On the other hand, a break below 1.42 could see the spot re-test 1.4178 (23.6% of 1.3835-1.4284).
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