GBP/USD weaker, challenging 1.4400

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

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    After testing the area of 1.4450 in overnight trading, GBP/USD has now surrendered those gains and it has returned to the 1.4400 neighborhood, or session lows.

    GBP/USD focus on UK data

    The sterling has been under pressure since the new year has kicked in, as ‘Brexit’ jitters keep lingering and expectations of a rate hike by the BoE have been pushed further back to the mid-2017, according to the recent Quarterly Inflation Report.

    In the meantime, spot is retreating for the second session in a row against the backdrop of swelling risk aversion and ahead of UK’s Trade Balance figures due later. Consensus sees the trade deficit to have decreased to £10.35 billion during December.

    GBP/USD levels to consider

    As of writing the pair is down 0.19% at 1.4399 with the next support at 1.4353 (23.6% Fibo of 1.5240-1.4079) followed by 1.4147 (low Jan.29) and then 1.4079 (low Jan.20). On the other hand, a breakout of 1.4670 (high Feb.4) would aim for 1.4693 (55-day sma) and finally 1.4796 (61.8% Fibo of 1.5240-1.4079).
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