GBP/USD – 23.6% of Brexit fall retraced, what’s next?

GBP/USD has retraced 23.6% Fibo of Brexit day high and post Brexit low as data released in the Us over the last month showed little sign of post Brexit gloom and doom.

Hovers below 1.33

At the time of writing, the spot was trading around 1.3290 levels. The next move in the Cable largely depends on the US wage growth figures due for release later today and the effect it has on the Fed rate hike probability.

The British Pound is on a relatively strong footing, given the upbeat UK data released in August and a sharp rebound in the manufacturing activity as indicated by PMI released yesterday. Hence sharp gains cannot be ruled out in case the US NFP and wage growth disappoints expectations.

GBP/USD Technical Levels

A break above 1.3317 (23.6% of Brexit day high – post Brexit low) would open doors for 1.3533 (June 29 high), above which the spot could target 1.3641 (38.2% of Brexit day high – post Brexit low). On the lower side, breach of 3143 (50-DMA) would shift risk in favor of 1.3056 (July 26 low) and 1.30 levels.