19 Jan 2016
GBP/USD: Offered again near 5-DMA
FXStreet (Mumbai) - The GBP/USD pair ran into offers again near 5-DMA, a pattern that has been in place since the beginning of the current year.
Sits above 1.43
The pair turned lower from the high of 1.4340; which is just short of the 5-DMA at 1.4351 and now trades around 1.4305 levels. The currency was already on the rise ahead of the CPI data and extended gains by 20 odd pips after the data showed an uptick in the core inflation.
The focus now is on the BOE Carney’s speech. Traders would keep an eye on Carney’s take on wage growth and economic slowdown and accordingly adjust BOE rate hike bets.
GBP/USD Technical Levels
The immediate resistance is seen at 1.4351 (5-DMA + Jan 12 low), ahead of the major hurdle at 1.4439 (hourly 200-MA). A break higher would expose 1.4473 (23.6% of 1.5240-1.4237). On the other hand, support is seen at 1.4275 (hourly 50-MA), under which the pair could drop to 1.4227 (May 2010 low).
Sits above 1.43
The pair turned lower from the high of 1.4340; which is just short of the 5-DMA at 1.4351 and now trades around 1.4305 levels. The currency was already on the rise ahead of the CPI data and extended gains by 20 odd pips after the data showed an uptick in the core inflation.
The focus now is on the BOE Carney’s speech. Traders would keep an eye on Carney’s take on wage growth and economic slowdown and accordingly adjust BOE rate hike bets.
GBP/USD Technical Levels
The immediate resistance is seen at 1.4351 (5-DMA + Jan 12 low), ahead of the major hurdle at 1.4439 (hourly 200-MA). A break higher would expose 1.4473 (23.6% of 1.5240-1.4237). On the other hand, support is seen at 1.4275 (hourly 50-MA), under which the pair could drop to 1.4227 (May 2010 low).