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GBP/USD erases losses, approaches 1.5500

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

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Córdoba) - GBP/USD bottomed at 1.5412 after the release of US economic data (inflation and jobless claims) and then rebounded. During the last hours accelerated from the bottom and rose back above 1.5450.

    Currently is trading at 1.5470, where the hourly 20 SMA is located. The pair rose recently to 1.5480 and it has erased all losses.

    USD mixed, GBP up

    Greenback lost strength across the board during the American session. While inflation and jobless claims data offered a bullish outlook for the US dollar, the next round of data, that included the Philly Fed (rose from -6 to -4, below expectations), showed more signals of activity deceleration.

    On the other side, the pound is rising also versus the euro and the Swiss franc, still supported by yesterday’s UK employment report.

    GBP/USD: 3 price zones to watch

    The recent recovery pushed the price toward daily highs that lie at 1.5507. Cable needs to consolidate above 1.5500 to open the doors for further gains and to a continuation of the rally that started back in October 1, from 1.5105.

    To the downside, the key support to the current movement is located at 1.5260/80, where an uptrend line (originated at Oct low) is located and above here at 1.5380 – 1.5400 (Oct 9, 13 highs).
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