GBPUSD Update – Fibonacci Retrace Caps Recent Highs
- The GBPUSD currency pair is range trading between the 1.5070 prior support area and 1.5220 previous resistance zone.
- Pound dollar has only covered 77% of the ADR (average daily range) today and is trading in a consolidation phase after the extended downside move seen over recent weeks.
- The range highs coincide with the 61.8% Fibonacci retrace of the last leg lower. This area has capped the upside, combined with the effect of positive U.S. economic data released today and related US dollar upside.
- We note that the dollar has seen gains versus the euro (EURUSD -0.76%) and the Swiss Franc (USDCHF +0.48%) amongst the key currency majors. The Japanese yen has outperformed today with a +0.77% gain versus the greenback.
- Demand for sterling is still limited, with concerns over the outlook for UK growth and broad based risk aversion flows noted over recent sessions.
- In related markets we note that the UK FTSE closed + 0.7% and the German DAX at a + 1% gain. The USDX pared initial losses from earlier today and has rallied to the 82.00 area, the 61.8% Fibonacci retrace of 84.10 – 78.60.
GBPUSD News, Pound/Dollar Outlook. Nick Simpson, Forex-FX-4X.com