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GBP/USD consolidates losses, holds above 1.5000

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Dec 15, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Córdoba) - GBP/USD is falling for the second day in a row and since the beginning of the week it lost almost 200 pips. Today it bottomed at 1.5032 and then attempted to recover but if found resistance at 1.5065. Near the end of the session it was trading at 1.5040/45.

    Cable was affected by a stronger US dollar ahead of tomorrow’s FED decision. Inflation data from the United Kingdom showed mix data but failed to boost the pound. In the UK, tomorrow important economic data will be release with the employment report.

    “We estimate that average weekly earnings excluding bonuses (3M average) declined to 2.3% y/y in October from 2.5% y/y in September mainly due to a combination of an odd jump in earnings in September last year and zero growth in earnings in August and September this year. Going forward, we expect wage inflation to accelerate further as the labour market continues to tighten. We estimate that the unemployment rate (3M) was unchanged at 5.3% in October”, wrote analysts from Danske Bank.

    GBP/USD technical levels

    The pair faces immediate resistance at 1.5065 (intraday high), 1.5105 (Dec 14 low) and 1.5180 (daily high and 23.6% retracement of July 2014 - April 2015 decline). On the opposite direction support is seen at 1.5030 (daily low), 1.5000 (psychological level) and 1.4955 (last week low).
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