USD selling stalls, GBP/USD drops below 1.46

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 4, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    The broad based USD sell-off seen in the NY session ran out of steam in Asia, opening doors for a drop in the GBP/USD below 1.46 levels.

    Focus on Super Thursday events

    UK side of the story is likely to have a major say in determining the exchange rate as we move closer to the Super Thursday events- BOE rate decision, Minutes, Quarterly Inflation Report (QIR). Markets are expecting the central bank to maintain its dovish stance.

    Later in the day, US weekly jobless claims are due for release. Apart from the data, the broader market sentiment and the resulting impact on the USD could influence the pair.

    GBP/USD Technical Levels

    The spot currently trades around 1.4570. The immediate resistance is seen at 1.46, ahead of the major hurdle at 1.4649 (previous day’s high), which if taken out shall open doors for a rally to 1.4712 (50-DMA). On the other hand, a break below a strong support zone of 1.4519-1.4515 (38.2% of 1.5230-1.4079 + 23.6% of 1.4079-1.4649) would open doors for a slide to 1.4431 (38.2% of 1.4079-1.4649).
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