Key GBPUSD Support Broken – Moody’s Threatens UK Credit Rating
- The U.S.Dollar has gained ground across the board on safe haven flows – this comes as Moody’s threatens UK credit rating along with France.
- Inflation data eyed as CPI figures will be released and QE very much in focus – (CPI is the change in price of goods and services which have been purchased by consumers). Inflation Data could have a strong bearing on the the case for additional QE expansion.
- The near term key GBPUSD support level at 1.5730 could potentially become resistance.
- Fibonacci retrace confluence around the 1.5740 and 1.5770 levels.
- Descending trend line could see interaction on a failure of the aforementioned previous support to hold as resistance.
- Recent COT report data shows British pound sterling futures positioning has worsened following two consecutive weeks of improvement. Sterling futures positions were 33,122 net short as of February 7th compared to 26,214 net short on the previous week.
GBPUSD 4 Hour Chart