GBP/USD clings to 100-DMA, awaits BOE Carney

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Oct 20, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - The GBP/USD pair failed to extend beyond 1.55 handle for the second straight session and eased-off highs, with the bulls gearing up for the BOE policymakers’ speeches with the testimony from Governor Carney in the spotlight.

    GBP/USD retraces from daily R1

    The GBP/USD pair trades 0.09% higher at 1.5479, retreating from fresh session highs reached at 1.5506, where the daily R1 lies. The major continues to trade in familiar range near the upper band of the 1.54 handle and enjoys moderate gains on the back of broad based US dollar retreat.

    However, the upside remains capped as the losses in the European stocks sour the market sentiment and reduce the demand for higher yielding currencies such as the GBP. The UK’s FTSE drops -0.39% while the DAX loses -0.47% so far.

    Meanwhile, the EUR macro calendar remains data-thin ahead and hence the focus now remains on the speeches from the BOE and the Fed officials for further momentum on the major.

    GBP/USD Levels to consider

    The pair has an immediate resistance at 1.5503/06 (daily R1 + Today’s High) above which gains could be extended to 1.5513/17 (Oct 15 High + h1 R2). On the flip side, support is seen at 1.5459/55 (Today’s Low & 50-DMA) below which it could extend losses to 1.5400 (round number).
    For more information, read our latest forex news.

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