GBP/USD off-weekly highs, near hourly 200-SMA

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Nov 16, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - GBP/USD extends is consolidative mode into the late-Asian trades and remains offered on the 1.52 handle, on the back of a minor correction seen after last week’s rally.

    GBP/USD capped below 5-DMA

    The GBP/USD pair trades -0.17% lower at 1.5211, now hovering close to session lows struck at 1.5207 in early Asia. The major failed near 20-DMA located at 1.5263 and keeps pushing lower thereon, now testing hourly 200-SMA at 1.5209 levels.

    The cable remains in the red on the back of rising demand for the US dollar, which is mainly driven by EUR/USD weakness. While ongoing risk-aversion spurred by Paris terror attacks over the weekend also dampened the sentiment around the higher-yielding currencies such as the GBP.

    Meanwhile, markets continue to digest last week’s upbeat UK jobs data as attention now turns towards the inflation figures from the UK and US due for release tomorrow amid a data-empty UK docket later today.

    GBP/USD Levels to consider

    The pair has an immediate resistance at 1.5263/66 (20-DMA/ Nov 13 high), above which 1.5292/1.5300 (50-DMA/ round number) would be tested. On the flip side, support is seen at 1.5201/00 (Nov 5 Low/ psychological levels) below which it could extend losses to 1.5185 (Nov 13 Low).
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