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GBP/USD vulnerable, but holds above 1.4100

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 23, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    The GBP/USD pair extends losses for the second straight session today, although manages to hold above the 1.41 handle amid negative Asian equities.

    GBP/USD: Risk remains to the downside

    The GBP/USD pair drops 0.21% to 1.4120, finding good support at 1.4107, session lows. The cable remains under pressure and oscillates back and forth within a 20-pips narrow range over the last hours as markets remain unnerved ahead of the much-awaited BOE quarterly inflation report hearings, which may shed more light on the UK’s economic outlook as well as on the BOE rate hike prospects.

    Meanwhile, looming concerns over the Brexit referendum continue to weigh on the investors’ mind and hence, keep the cable undermined. Further, renewed risk-aversion wave witnessed across Asia on falling oil prices, also weighs on the risk/ higher-yielding currency GBP.

    Besides the UK’s inflation report hearings, focus also remains on the US consumer confidence and existing home sales data for further insights on the price action.

    GBP/USD Levels to consider

    The pair has an immediate resistance at 1.4168 (daily pivot), above which 1.4200/20 (round number/ Jan 20 High) would be tested. On the flip side, support is seen at 1.4100 (psychological levels) below which it could extend losses to towards 1.4079 (Jan Low).
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