GBP/USD: Recovery stalls near falling channel resistance

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Dec 18, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Mumbai) - The recovery in the GBP/USD from the NY session low of 1.4865 ran into offers near the falling channel resistance at 1.4933 in Asia.

    Hovers around 1.4910

    The pair turned lower from the high of 1.4929 levels to trade around 1.4920 levels. The bid tone on the USD strengthened yesterday as markets priced-in the possibility of the four rate hikes in 2016. Consequently, the GBP/USD pair fell from 1.5010 to 1.4865 levels before recovering to 1.4910 levels in Asia today.

    The pair could track the Treasury yields in the European session. Later in the day, the US market services PMI and the regional manufacturing index could influence the pair.

    GBP/USD Technical Levels

    The immediate resistance is seen at 1.4933 (channel resistance), above which the gains could be extended to 1.50 levels. On the other hand, a break below 1.49 levels would expose the previous session’s low of 1.4865.
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