GBP/USD ignores weak US data, eyes daily low

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Oct 27, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - The GBP/USD weakened to 1.5315 and is heading towards the daily low at 1.5301 as markets ignored the weaker-than-expected US Markit services PMI report.

    Offered below hourly 50-MA

    Fresh offers hit the pair once if dipped below the hourly 50-MA located at 1.5337. The dismal US durable goods orders did little to reduce the demand for the US dollar. A similar action is being witnessed even though the services PMI highlighted the slowdown in the economic activity.

    The US consumer confidence number also dipped in October but again had little impact on the USD strength. The US stocks are down in early session, while the treasury yields have taken a hit. At the moment, the pair is trading around 1.5315 levels.

    GBP/USD Technical Levels

    The immediate resistance is seen at 1.5337 (hourly 50-MA), followed by a major hurdle at 1.5355 (38.2% of 1.5107-1.5509). A break above the same would expose 1.5373 (50-DMA). On the other side, a failure to sustain above 1.53 could push the pair down to 1.5260 (61.8% of 1.5107-1.5507).
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