GBP/USD Peeps Above 1.44 Handle

GBP/USD Peeps Above 1.44 Handle

31 March 2016, 13:28
Roberto Jacobs

GBP/USD Peeps Above 1.44 Handle

GBP/USD printed a session high of 1.4420 as Euro’s move to fresh 5-month high is keeping USD under pressure across the board.

Weak data ignored

In light of a bullish move in the EUR/USD, sterling traders are ignoring a weak data released today. UK Q4 GDP was revised higher on upwardly revised construction output, but the current account deficit rose to 7% of GDP; a new record high. Furthermore, savings ratio and real household disposable income fell as well.

Next on tap is weekly US initial jobless claims figure and Fed speak. Action in the EUR/USD pair could also affect overall demand for the US dollars.

GBP/USD Technical Levels

The immediate hurdle is noted at 1.4436 (Mar 11 high). A violation there would expose 1.4475 (inverse head and shoulder neckline), above which prices may test supply around 1.4514 (Mar 18 high). On the other hand, failure to remain above 1.44 could result in a test of support at 1.4368 (38.2% of 1.5230-1.3835), beyond which prices may drop to 1.43 handle.

(Market News Provided by FXstreet)

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