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GBP/USD rejected at 1.55, drifts lower to 1.5470

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Nov 2, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Mumbai) - The GBP/USD pair failed to take out 1.5500 - psychological barrier on yet another occasion and retreated nearly 25 pips as markets digest the latest UK PMI report.

    GBP/USD holding above 100-DMA

    The GBP/USD pair trades 0.31% higher at 1.5476, partly reversing a spike to 1.5498 daily highs. The GBP bulls took a breather and now consolidate the heavy gains seen following the release of surprisingly positive UK manufacturing PMI results.

    The manufacturing PMI for the UK, came in significantly better than expected at 55.5 points in October, up from a revised 51.8 points seen in September, hitting the highest level in sixteen months.

    Adding to the upbeat sentiment around GBP/USD, appetite for risker assets also improved as a major turnaround was seen in risk-sentiment after the European open. Meanwhile, the focus now shifts to US calendar, with the ISM manufacturing PMI reading to be closely eyed.

    GBP/USD Levels to consider

    The pair has an immediate resistance at 1.5498/1.5500 (Today’s High/round number) above which gains could be extended to 1.5531 (Sept 29 High). On the flip side, support is seen at 1.5445 (100-DMA) below which it could extend losses to 1.5383/81 (5 & 20-DMA).
    For more information, read our latest forex news.
     

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