GBP/USD nears 1.52 ahead of Fed speak

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Nov 12, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - The GBP/USD pair was unimpressed by the weekly jobless claims data and continues to trade near the upper end of a 25-pip range of 1.5175-1.52 established in the European session.

    Eyes Fed speak

    The weekly US initial jobless claims remained steady at 276K, compared to the expected drop to 270K. However, the markets did not react much to the slightly weaker-than-expected data. The attention now shifts to the speech from the fed officials.

    The main event for the day is the Fed’s Yellen speech. The December rate hike is widely considered as a done deal. Still, markets would be focused on the tone of Yellen’s comments, which could provide a hint at the size of the lift-off (25bps or less than 25bps).

    At the moment, the pair is trading within a touching distance from 1.52 handle.

    GBP/USD Technical Levels

    At 1.5195, the immediate resistance is seen at 1.5207 (38.2% of last week’s drop), above which the pair could rise to 1.5248 (50% of Apr-Jun rally). A break above would expose 1.5315 (50-DMA). On the other side, a break below 1.5163 (Sep 4 low) would open doors for a re-test of 1.5138 (23.6% of last week’s drop).
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