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2 Mar 2015
GBP/USD consolidates at daily lows
FXStreet (Córdoba) - GBP/USD broke below the 1.5380 level and extended intraday losses during the American session as the greenback strengthened despite mixed US data.
GBP/USD fell to a fresh daily low of 1.5350 before finding support at the 20-day SMA, but with the subsequent bounce capped by 1.5375, the pair was confined to a phase of consolidation. At time of writing, Cable is trading at 1.5360, down 0.59% on the day.
“The weakness in the GBP isn’t really based on anything fundamental as UK data wasn’t depressing by any stretch of the imagination this morning”, said Neal Gilbert, analyst at FOREX.com.
From a technical perspective, Gilbert notes that the 1.5335 level has been both a support and resistance level over the last month, and to help the cause, there is a bullish Gartley pattern that completes around the same level. “If that support can hold once again and the fundamental moves begin to make a little more sense, the GBP/USD may be in for a rebound as the day progresses”.
GBP/USD fell to a fresh daily low of 1.5350 before finding support at the 20-day SMA, but with the subsequent bounce capped by 1.5375, the pair was confined to a phase of consolidation. At time of writing, Cable is trading at 1.5360, down 0.59% on the day.
“The weakness in the GBP isn’t really based on anything fundamental as UK data wasn’t depressing by any stretch of the imagination this morning”, said Neal Gilbert, analyst at FOREX.com.
From a technical perspective, Gilbert notes that the 1.5335 level has been both a support and resistance level over the last month, and to help the cause, there is a bullish Gartley pattern that completes around the same level. “If that support can hold once again and the fundamental moves begin to make a little more sense, the GBP/USD may be in for a rebound as the day progresses”.