GBP/USD: Bulls struggle to take out 200-DMA resistance

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Oct 7, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - The Sterling bulls’ first attempt to take out the 200-DMA resistance at 1.5319 quickly ran into offers at 1.5322, pushing the GBP/USD pair back to 1.53 levels.

    More attempts at 200-DMA ahead

    The US calendar offers not major economic data release, while the stock markets in the US appear on track to extend the risk-on rally today. Consequently, the GBP/USD has little reason to suffer sharp losses from the current level of 1.53.

    Meanwhile, an upbeat NIESR UK GDP estimate could only add to the bullish momentum. Thus, more attempts at the 200-DMA are likely as we head towards the Bank of England (BOE) rate decision tomorrow.

    GBP/USD Technical Levels

    The spot is trading around 1.53 levels, with an immediate major hurdle seen at 1.5319 (200-DMA), followed by a resistance at 1.5353 (200-MA on 4-hr chart). A break above the same would expose 1.5431 (50-DMA). On the downside, a break below 1.5297 (100-MA on 4-hr) could open doors for a technical correction to 1.5250 (support on hourly chart) and 1.52 levels.
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