Corrective rally in the GBP/USD continued in Asia, however, the battered bulls are having a tough time keeping the pair above 1.40 levels.
Rejected at key Fibo level
The spot failed to sustain above 1.4007 (127.2% Fibo expansion of 1.3878-1.3960-1.3903) levels and thus fell back to near 1.3985 (100% Fibo expansion level). Sterling rallied on Thursday following 500-pip loss in the first three trading sessions of the week.
The oversold technical conditions overshadowed a better-than-expected US rally, helping the pair rise to 1.4014 in Asia, before surrendering gains. Traders now await the US Q4 preliminary GDP estimate.
GBP/USD Technical Levels
The immediate support is seen at 1.3965 (76.4% fibo expansion), under which the pair could drop to 1.3947 (hourly 50-MA). A break higher would open doors for a rally to 1.4014 (Asian session high), which if taken out shall open doors for a rally to 1.4031 (hourly 100-MA).
(Market News Provided by FXstreet)