GBP/USD meets fresh supply, eyes Thursday’s low

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

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - The offered tone on the GBP keeps growing bigger in the European morning, now pushing GBP/USD to fresh session lows.

    GBP/USD fails to resist 1h 100-SMA at 1.4882

    The GBP/USD pair trades -0.07% lower at fresh session lows of 1.4870, now losing sight of 1.49 handle. The cable shaved-off gains and resumed yesterday’s slide as the bulls failed to benefit from the prevailing risk-on environment backed by rallying European stocks and a broader recovery in the commodity markets.

    Moreover, a broadly lower US dollar also failed to boost the sentiment around the GBP/USD pair, as the UK traders sold-off the pound on fading hopes of a BOE rate rise next year. Looking ahead, the US goods trade balance, S&P/CS Composite-20 HPI y/y and CB Consumer Confidence data lined up for release later in the NY session may provide the much-needed impetus to the pair.

    GBP/USD Levels to consider

    The pair has an immediate resistance at 1.4910/12 (5-DMA /1h 200-SMA), above which 1.4935 (Dec 28 High) would be tested. On the flip side, support is seen at 1.4863/61 (1h 100-SMA/ Dec 24 Low) below which it could extend losses to 1.4846 (daily S2).
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