GBP/USD Drops Below 50-DMA
GBP/USD is back below 50-DMA level of 1.4250 in early Europe despite China led risk-on in the financial markets.
Trades below key Fibo
At
1.42478, the spot is also trading below 1.4252 (50% of 1.4669-1.3835)
levels. Previous session’s strong UK CPI report did push Cable to a high
of 1.4348, but hawkish talk from Fed officials and IMF’s take over
Brexit saw the pair surrender gains and drop to 1.42 levels.
Moderate
recovery in Asia ran out of steam near 1.4280 levels before the pair
fell back below 50-DMA Levels. Given the economic calendar in UK is
empty; the focus is likely to be on the action in the equity markets.
GBP/USD Technical Levels
The
immediate resistance seen at 1.4279 (daily low), if breached, shall
open doors for 1.4330 (23.6% of 1.5930-1.3835) beyond which previous
daily high of 1.4348 could be put to test. On the other hand, acceptance
below 1.4252 (50% of 1.4669-1.3835) would indicate a possibility of a
drop to 1.4205 (10-DMA). Next major support is noted at 1.4154 (38.2% of
1.4669-1.3835).
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