GBPUSD Clears And Settles Below A Pivot Area 1.50 level
Aayush Jindal
Key Highlights
British pound dived against the US dollar and traded below the all-important 1.50 level.
4850 is a short-term support area in GBPUSD and on the upside 1.4950-60 is a barrier.
In the US, the Producer Price Index will be released by the Bureau of Labor statistics, Department of Labor and expected to increase by 0.3%.
Canadian employment report will be published by the Statistics Canada today, which might cause volatility in USDCAD.
Importance of 1.50 in GBPUSDThe British pound recently consolidated above the 1.50 for a brief time, as buyers fought to protect the mentioned level. Eventually, they failed and the GBPUSD pair broke the important level to move lower by around 150 pips. The 1.50 support area holds a lot of importance for GBPUSD, as it acted as a pivot area for the pair on a number of occasions.There is now a bearish trend line formed on the hourly chart of the GBPUSD pair, which is likely to act as a hurdle if the pair moves higher from here. The 23.6% fib retracement level of the last leg from the 1.5355 high to 1.4849 low is also around the same area. So, one might say that there is a major resistance around the 1.5000-40 area signifying the importance of the 1.50 handle.On the downside, the 1.4850 level is key, and a break below the same might call for more downsides in the near term. The next area of interest in that situation would be around the 1.4780 level where there is a chance of the British pound buyers taking a stand.New Zealand Business PMIEarlier today, the Business NZ PMI was released by the Business NZ. The outcome was better than the last time, as the Business NZ PMI came in at 55.9 in February 2015. This was higher compared to the last revised reading of 50.7.US PPILater today, there is an important event in the US, as the Producer Price Index will be released by the Bureau of Labor statistics, Department of Labor. The market is expecting it to register a gain of 0.3% in February 2015, compared to the preceding month. In terms of the yearly change, the market is expecting no change in the US Producer Price Index for February 2015.
On the downside, the 1.4850 level is key, and a break below the same might call for more downsides in the near term. The next area of interest in that situation would be around the 1.4780 level where there is a chance of the British pound buyers taking a stand.New Zealand Business PMIEarlier today, the Business NZ PMI was released by the Business NZ. The outcome was better than the last time, as the Business NZ PMI came in at 55.9 in February 2015. This was higher compared to the last revised reading of 50.7.US PPILater today, there is an important event in the US, as the Producer Price Index will be released by the Bureau of Labor statistics, Department of Labor. The market is expecting it to register a gain of 0.3% in February 2015, compared to the preceding month. In terms of the yearly change, the market is expecting no change in the US Producer Price Index for February 2015.
On the downside, the 1.4850 level is key, and a break below the same might call for more downsides in the near term. The next area of interest in that situation would be around the 1.4780 level where there is a chance of the British pound buyers taking a stand.New Zealand Business PMIEarlier today, the Business NZ PMI was released by the Business NZ. The outcome was better than the last time, as the Business NZ PMI came in at 55.9 in February 2015. This was higher compared to the last revised reading of 50.7.US PPILater today, there is an important event in the US, as the Producer Price Index will be released by the Bureau of Labor statistics, Department of Labor. The market is expecting it to register a gain of 0.3% in February 2015, compared to the preceding month. In terms of the yearly change, the market is expecting no change in the US Producer Price Index for February 2015.