GBP/USD Attempting a Break Below Hourly 200-MA
GBP/USD
is on a weak footing amid oil driven risk-off in the markets, now
attempting a break below 1.4164 (hourly 200-MA + hourly 50-MA + 23.6% of
1.5230-1.3835).
Rejected at 50-DMA
A
break above hourly 200-MA on Friday saw fresh bids come-in, however,
bullish momentum ran out of steam around 50-dMA hurdle. The pair
eventually trimmed gains to end last week at 1.4196 levels.
Early
Asian trading saw markets respond to failure of Doha talks by sending
oil and commodity currencies lower. GBP too is feeling the heat as oil
driven low inflation would only add the pressure on BOE to delay its
rate hike or in fact begin telegraphing a rate cut.
GBP/USD Technical Levels
The
pair hit a session low of 1.4159 and now trades around 1.4162.
Acceptance below 1.4154 (38.2% of 1.4669-1.3835) would expose 1.4079
(Jan 21 low) followed by 1.4032 (23.6% of 1.4669-1.3835). Conversely,
recovery above 1.4164 (hourly 200-MA + hourly 50-MA + 23.6% of
1.5230-1.3835) would open doors for a re-test of 1.42. Next resistance
is noted at 1.4252 (50% of 1.4669-1.3835).
