GBP/USD bearish pressures build up, cracks 1.5200

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Nov 16, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - The offered tone on the GBP strengthened in recent dealings, now pushing GBP/USD below 1.52 handle, as a softer start in the European stocks curbed the appetite for risky assets.

    GBP/USD extends below 1h 200-SMA

    The GBP/USD pair trades -0.29% lower at fresh session lows of 1.5191, having failed to resist 1.52 handle. The major extends losses mainly driven by fresh buying interest seen around the EUR/GBP cross post-European open.

    Moreover, the sharp losses seen in the European stocks, as markets negatively react to Paris terror attack further diminished the bids for higher-yielding currencies such as the GBP.

    Meanwhile, the major continues to suffer from Paris terror-led risk-off trades amid a data-quiet UK docket. Looking ahead, attention now turns towards the inflation figures from the UK and US due for release tomorrow.

    GBP/USD Levels to consider

    The pair has an immediate resistance at 1.5263/66 (20-DMA/ Nov 13 high), above which 1.5292/1.5300 (50-DMA/ round number) would be tested. On the flip side, support is seen at 1.5185 (Nov 13 Low) below which it could extend losses to 1.5150 (psychological levels).
    For more information, read our latest forex news.

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