GBP/USD Hovers Below 50% Fibo

GBP/USD Hovers Below 50% Fibo

22 March 2016, 12:11
Roberto Jacobs
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GBP/USD Hovers Below 50% Fibo

GBP/USD avoided fresh sell-off despite weaker-than-expected UK CPI, but stays on a weak footing around 1.4284 (50% Fibo of post Fed rally).

Supported by 38.2% Fibo

The sell-off in Cable came to a halt around 1.4255 (38.2% of 1.3835-1.4514), but the subsequent recovery failed to cut through offers around 1.43 handle. UK CPI missed estimates, but core held up well, while public sector borrowing increased. Overall, the data did little to help Sterling recover losses suffered mainly due to news of terror attack in Brussels.

Meanwhile, Brexit fears and talk of Fed rate hike is also keeping the pair on the back foot. The focus remains on news flow out of Brussels.

GBP/USD Technical Levels

The immediate hurdle is seen at 1.4284 (50% Fibo of post Fed rally), above which the spot would make an attempt to cut through offers around 1.43. If successful, the pair could make run at 1.4354 (23.6% of 1.3835-1.4514). On the other hand, a break below 1.4255-1.4252 (38.2% of 1.3835-1.4514 + 50% of 1.4669-1.3835) would expose support at 1.4229 (61.8% of 1.4053-1.4514) and 1.42 levels.

(Market News Provided by FXstreet)

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