GBP/USD fails to capitalize on weak US data

A contraction in the US factory orders is not helping GBP/USD, which appears to have run out of steam after having clocked a daily high of 1.4320 levels.

Trades around 1.4280

The spot is slowly trimming gains, now trading around 1.4280 levels even though the US factory orders fell 1.7% in February compared to the estimated drop of 1.6%. The previous month’s figure was 1.2%.

The bird rose to a high of 1.4320 levels as traders ignored S&P’s warning about possible credit rating downgrade if Britons vote in favor of Brexit. Furthermore, UK construction PMI largely turned out to be non-event for the pair.

GBP/USD Technical Levels

The pair has clocked a fresh session high of 1.4320. Immediate hurdle at 1.4330 (23.6% of 1.5930-1.3835) would expose 1.4351 (61.8% of 1.4668-1.3835), above which the cross could target 1.44. On the other hand, a breakdown of 50-DMA support at 1.4279 would open doors for a re-test of 1.4252 (50% of 1.4668-1.3835) and 1.4191 (daily low).