GBP/USD deflates to lows post-UK data

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Oct 9, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Edinburgh) - The pound is now losing its grip vs. the dollar, sending GBP/USD to session lows in the 1.5350/45 band.

    GBP/USD weaker on UK data

    The pair has surrendered initial gains after the trade deficit in the UK economy came in at £11.15 billion during august, missing expectations at £10.0 billion. Adding to the grim results, July’s deficit was revised lower to £12.20 billion from £11.08 billion.

    GBP has quickly shrugged off the pessimism that followed the BoE meeting and minutes on Thursday helped by the dovish tone from the FOMC minutes, which keeps weighing on USD.

    GBP/USD important levels

    As of writing the pair is up 0.04% at 1.5353 facing the initial resistance at 1.5400 (psychological level) ahead of 1.5443 (Fibo 38.2% of 1.5658-1.5107) and then 1.5508 (100-day sma). On the other hand, a breach of 1.5137 (low Oct.5) would expose 1.5107 (low Oct.1) and then 1.5089 (low May 5).
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