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GBP/USD rejected at daily highs, back below 1.51

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Dec 7, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Mumbai) - The pound caught a fresh bid tone versus its US counterpart in the European morning, sending GBP/USD back above 1.51 handle in a bid to test daily highs.

    GBP/USD well supported above 50-DMA at 1.5085

    The GBP/USD pair trades -0.12% lower at 1.5093, having revisited daily highs at 1.5115 last minutes. The cable reversed a part of Friday’s losses and now struggles to extend further beyond 1.5115 region as the upside remains capped on the back of a broadly higher US dollar.

    The US dollar extends its bullish run today after Friday’s upbeat US payrolls data sealed in a Dec Fed rate hike deal, lifting the greenback from the ECB-induced sharp correction. The US dollar, which measures the buck’s relative value against its major peers, rises 0.22% to 98.49.

    Meanwhile, renewed risk-on trades expected to be seen on the European stocks will further boost the risk currency – the USD, and hence, weigh further on the major. Calendar-wise, the UK docket remains absolutely empty this session and therefore attention shifts towards BOE Governor Mark Carney’s testimony due later in the NY session.

    GBP/USD Levels to consider

    The pair has an immediate resistance at 1.5131 (20-SMA), above which 1.5157 (Dec 4 High) would be tested. On the flip side, support is seen at 1.5085/76 (50-DMA/ Dec 4 Low) below which it could extend losses to 1.5057 (1h 100-SMA).
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