GBP/USD fails once again at 100-DMA

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Nov 4, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - The recent spurt of GBP buying post-UK services PMI seems to wane, with GBP/USD now easing-off fresh session highs reached at 100-DMA.

    GBP/USD drops below 5-DMA

    The GBP/USD pair trades flat at 1.5425, retracing from fresh session highs reached at 1.5445 shortly after the data release. The major gave back gains and now trades almost unchanged as markets moved past upbeat UK services PMI report and now turn their attention towards a plethora of Fed speaks and the US dataflow.

    The UK services PMI ticked higher to 54.9 in October, rebounding from the previous month's 29-month low of 53.3, and beat consensus of 54.5.

    Further, the upside in the major also remains in check as markets refrain from creating fresh positions ahead of the BOE’s ‘Super Thursday’ tomorrow, with main focus on the BOE minutes and the quarterly inflation report. While nervousness over Friday’s non-farm payrolls data also keeps GBP traders on the side-lines.

    GBP/USD Levels to consider

    The pair has an immediate resistance at 1.5445/50 (100-DMA/ psychological levels) above which gains could be extended to 1.5500 (round number). On the flip side, support is seen at 1.5401/00 (Nov 2 Low/ round number) below which it could extend losses to 1.5366/57 (200-DMA/1h 200-SMA).
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