GBP/USD eases-off fresh two-week highs, below 1.5300

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 GBP bulls took a breather in its rally and paused ahead of 1.53 barrier, and now retraces to 20-DMA located near 1.5290 region as markets digest the latest upbeat UK factory data.

    GBP/USD drops from 1.5311

    The GBP/USD pair trades 0.44% higher to 1.5295, easing-off fresh two-week highs recorded at 1.5311 in last hours. The major remains heavily bid, although recede some gains as traders assess the latest above estimate the UK industrial production data and its implications heading into the BOE decision due to be announced tomorrow. The total industrial production in the UK rose 1% m/m in Aug versus expectations of a 0.3% gain and rebounded from -0.4% seen in July.

    The major struggles to extend beyond 1.53 barrier as the greenback remains broadly higher on the back of the recent rally witnessed in the US treasury yields. The benchmark 10-year treasury yields rally 2% to 2.076%. While the 2-year yields on the US notes advance over 2.60% to 0.621%. Markets now await the NIESR GDP estimate due later today for further momentum on the pair.

    GBP/USD Levels to consider

    The pair has an immediate resistance at 1.5347 (200-DMA) above which gains could be extended to 1.5370 (Sept 23 High) levels. On the flip side, support is seen at 1.5243 (Hourly 20-SMA) below which it could extend losses to 1.5196 (Hourly 50-SMA) levels.
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