GBP/USD: Bulls fight back control, bounces-off 1.4900

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Dec 18, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - GBP/USD halted its recovery mode from eight-month lows at 1.4950 and drifted back towards 1.49 handle as the greenback trimmed losses against its major peers.

    GBP/USD regains hourly 20-SMA

    The GBP/USD pair trades 0.18% higher at 1.4928, reversing a brief dip below 1.49 handle some minutes ago. The major defends gains and remains within a shouting distance of daily as the US dollar halted its corrective slide and recovered losses against its six major competitors. The USD index now trades -0.10% lower at 99.08 versus -0.40% previous.

    Moreover, the losses in the European equities also triggered renewed wave of risk-aversion into markets, capping further upside in the cable. While the downside remains cushioned on the back of stabilizing oil prices.

    Looking ahead, the UK docket remains data-empty and hence, attention shifts to the US services PMI and Fed Lacker’s speech due later today ahead of next week’s US Q3 GDP revision.

    GBP/USD Levels to consider

    The pair has an immediate resistance at 1.4958 (1h 50-SMA), above which 1.5004 (Dec 17 High) would be tested. On the flip side, support is seen at 1.4908 (1h 20-SMA) below which it could extend losses to 1.4886 (daily low).
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