GBP/USD on the back foot in the US session

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Oct 9, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - The GBP/USD pair made an attempt to recover from the daily lows, but stays on the back foot 1.5343 levels in the early US session.

    Supported by hourly 50-MA

    Sterling found some love around the hourly 50-MA located at 1.5329 levels, after having hit a low of 1.5322 levels. The ensuing recovery appears stalled around 1.5345-1.5347 levels as the widening UK trade deficit continues to weigh over the British Pound.

    The US import price index fell slower-than-expected in September, which too could be capping gains in Sterling. Meanwhile, Fed’s Lockhart said the rate hike could happen in October or December, but the markets have not responded much to his comments.

    GBP/USD Technical Levels

    The immediate resistance is located at 1.5380 (weekly 50-MA), above which the spot could rise to 1.5421 (50-DMA) and 1.5484 (100-DMA). On the other side, support is seen at 1.5318 (200-DMA) and 1.53, under which the spot could fall back to 1.5248 (50% of Apr-June rally).
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