GBP/USD Regains Poise After Horrible US Data
A sharper-than-expected contraction in the US industrial production is boding well for GBP/USD, which is back above hourly 200-MA level of 1.4162 following the data release.
Supported by 38.2% Fibo
The
pair slumped to near 1.4154 (38.2% of 1.4669-1.3835) ahead of the
release, before regaining poise after the data in the US showed
industrial production in March fell 0.7%, which was way bigger
contraction than the 0.1% drop expected by markets. February figure was
revised lower to -0.6% as well from 0.7%.
The spot is now
trading around 1.4175 levels. Pair clocked a high of 1.4204 in early US
session before deflating to 1.4154 levels ahead of the data release.
GBP/USD Technical Levels
The
immediate hurdle is noted at 1.4208 (hourly 100-MA) would expose 1.4252
(50% of 1.4669-1.3835). A violation there could yield 1.43 levels.
Conversely, failure to sustain above 1.4162 (hourly 200-MA) would shift
risk in favor of a drop to 1.41. Next major support is seen at 1.4079
(Jan 21 low).
(Market News Provided by FXstreet)
