GBP/USD: on the Front Foot, Eyes 38.2% Fibo Level
GBP/USD strengthened in Asia and is maintaining its bid tone in early Europe with eyes set on 1.4154 (38.2% of 1.4669-1.3835).
Focus on GBP/JPY amid Brexit fears
The
UK economic calendar is empty, thus the pair is at the mercy of the
action in the GBP/JPY cross. Yen bears have little reason to make their
presence felt as anti intervention lobby at BOJ and Japanese government
continues to strengthen. Nevertheless, technical factors may come into
play and trigger a correction in GBP/JPY cross and lend support to
Cable.
Volatility is likely to stay high as investors consider
the possibility of Brexit and its impact on the UK economy. Later in the
day comments from US Treasury secretary Jack Lew and Fed’s William
Dudley may influence the pair.
GBP/USD Technical Levels
The
immediate hurdle is noted at 1.4154 (38.2% of 1.4669-1.3835), above
which prices could rise to 1.4219 (10-DMA). A break higher could yield
rally to 1.4258 (50-DMA). Conversely, violation at immediate support of
1.4419 (5-DMA) would expose 1.4079 (Jan 21 low). Next major support is
seen at 1.4032 (23.6% of 1.4669-1.3835).
(Market News Provided by FXstreet)
