GBP/USD wipes-out gains, eases to 1.4080

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Mar 3, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    The GBP bulls appear to surrender control in the early European trades, sending GBP/USD lower from session tops reached just shy of 1.41 handle.

    GBP/USD erases gains as USD strengthens

    The GBP/USD pair trades almost unchanged at 1.4080, unable to surpass the strong resistance placed above 1.4090 zone. The cable’s recovery from weak UK construction PMI-led slide lost steam few pips short of 1.41 handle as the US dollar continued to garner upside momentum ahead of a host of fresh US economic data, with the main highlight being the ISM non-manufacturing PMI.

    The cable also treads water as markets remain wary ahead of the UK services PMI report due later this session. Markets expect a marginally weaker UK figure of 55.1 points, falling further from the 3-month high of 55.6 booked in November.

    GBP/USD Levels to consider

    The pair has an immediate resistance at 1.4100 (round figure), above which 1.4150/56 (psychological levels/ Feb 23 High) would be tested. On the flip side, support is seen at 1.4050/36 (10-DMA), below that at 1.4004 (Feb 23 Low).
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