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GBP/USD keeps range below 200-DMA, US data eyed

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 recovery failed near the 200-DMA now located at 1.5349 and bears once again took over control, with all eyes now focused on the upcoming US economic news.

    GBP/USD supported at 1.5310

    The GBP/USD pair trades -0.08% lower at 1.5341, unable to sustain above 200--DMA. The major consolidates to the downside as markets digest the latest UK GDP report and favour the US currency ahead of the dataflow from the US.

    The UK prelim GDP estimate for Q3 showed that the UK’s economic growth slowed to 0.5% in Q3 from 0.7% measured in Q2, prelim estimate showed on Tuesday. On yearly basis also slowed to 2.3% - the weakest reading since Q3 2013.

    Meanwhile, focus now remains on the batch of US macro data, which may also have major impact on the pair. Markets are expecting core durable goods orders to show a flat reading in Sept versus a -0.2% drop booked in Aug. While the consumer sentiment is expected to deteriorate in Oct to 102.5 against 103.0 recorded in Sept.

    GBP/USD Levels to consider

    The pair has an immediate resistance at 1.5391/1.5400 (10-DMA + round number) above which gains could be extended to 1.5451 (100-DMA). On the flip side, support is seen at 1.5302/01 (Oct 23 & 26 Lows) below which it could extend losses to 1.5263/50 (daily S2 + psychological levels).
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