GBP/USD extends recovery from 5-yr lows, near 1.4550

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 11, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - GBP/USD finally brought an end to its consolidative mode above 1.45 handle, and now extends the recovery beyond the mid-point of the last, despite a broadly higher US dollar.

    GBP/USD firmer, ignores stronger USD

    The GBP/USD pair trades 0.22% at 1.4556, flirting around fresh session highs scored at 1.4562 last minutes. A sudden turnaround in risk conditions, with the European markets trading modestly higher underpins the risk-sentiment. Thus, the European traders are seen taking the yield advantage and bidding up the GBP across the board.

    Meanwhile, the upside seems limited in wake of sliding oil prices and broad based US dollar strength. The USD index gains 0.21% to 98.66, recovering strongly from 98.14 levels. Furthermore, the sentiment on the global equities is expected to play a key role in absence of fundamental triggers from the UK docket this Monday.

    GBP/USD Levels to consider

    The pair has an immediate resistance at 1.4670/74 (5-DMA/ 1h 50-SMA), above which 1.4600/14 (round number/ 1h 100-SMA) would be tested. On the flip side, support is seen at 1.4500/1.4495 (round number/ daily low) below which it could extend losses to 1.4480 (June 2010 levels).
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