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GBP/USD hovers near 2-week lows, around 1.5260

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Oct 29, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Mumbai) - GBP/USD consolidates steep losses witnessed following the Fed decision, and languishes near two-week lows, as markets now await fresh cues from the European opening bells.

    GBP/USD trades way below 5-DMA

    The GBP/USD pair trades modestly flat at 1.5259,
    hovering close to fresh session lows struck at 1.5254 in last hour. GBP/USD attempted recovery from two-week lows met fresh supply near 1.5270 region and therefore the pair drifted lower to daily lows, before retreating slightly to 1.5260 levels, where it now mires.

    The FOMC induced fall in the cable was not as severe as seen in the EUR/USD pair, as the GBP was shielding as the BOE remains the only central bank, besides the Fed, to embark on normalizing its monetary policy.

    However, the major dropped almost 1 big figure after the FOMC stated that it would be appropriate to reassess the rate-hike decision at Dec 15-16 meeting.
    Markets read this as more hawkish-than expected and spurred a massive USD rally across the board.

    In the day ahead, the pair will be influenced by the UK net lending to individuals and CBI realized sales data ahead of a batch of significant US data.

    GBP/USD Levels to consider

    The pair has an immediate resistance at 1.5296/1.5300 (5-DMA/ round number) above which gains could be extended to 1.5350/60 (200/20-DMA). On the flip side, support is seen at 1.5245 (Oct 28 Low) below which it could extend losses to 1.5221 (daily S1).
    For more information, read our latest forex news.
     

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