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GBP/USD weaker, breaks below 1.4200

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Mar 7, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    It seems the recent rally in the sterling is taking a breather, with GBP/USD now deflating below the key support at 1.4200.

    GBP/USD gains capped at 1.4250

    Spot is retreating for the first time after five consecutive advances, running out of steam around post-Payrolls’ tops in the mid-1.4200s although still in good shape after the bounce off multi-year lows near 1.3820.

    Nothing expected data-wise in the UK economy, while the Fed’s Labor Market Conditions Index and speeches by FOMC Brainard and Fed’s Fischer will take centre stage in the IS docket.

    GBP/USD levels to consider

    As of writing the pair is retreating 0.17% at 1.4198 and a breach of 1.4152 (38.2% Fibo of 1.4670-1.3833) would open the door to 1.4030 (23.6% Fibo of 1.4670-1.3833) and finally 1.3833 (multi-year low Feb.29). On the other hand, the next hurdle lines up at 1.4249 (high Mar.4) followed by 1.4398 (55-day sma) and then 1.4410 (high Feb.19).
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