GBP/USD minor blip quickly reversed

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Nov 17, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - The GBP/USD witnessed a minor blip to 1.5189 on uptick in US inflation, but quickly made its way back to 1.52-1.5210 range.

    GBP resilient to rise in treasury yields

    The treasury yields extended gains after the official report in the US showed the CPI in October rose for the first time in three months. The data indicated the inflation is heading in the right direction – towards the Fed’s goal of 2%.

    However, the Sterling and most majors have remained resilient so far to the rise in the Treasury yields. Sterling’s resilience could also be explained by an uptick in the UK core inflation reported earlier today. The focus now is on the US industrial production figure.

    GBP/USD Technical Levels

    The immediate resistance is seen at 1.5248 (50% of Apr-Jun rally) and 1.5262 (50% of 1.5497-1.5027), above which the pair could test 1.53 handle. On the other side, a failure to sustain above 1.5169 (hourly 200-MA), could open doors for a sell-off to 1.5138 (23.6% of 1.5497-1.5027).
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