GBP/USD reverts to 1.5450 on UK data

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Oct 21, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - The GBP/USD pair bounced-off lows just ahead of 10-DMA located at 1.5407 and recovered losses following the release of above estimates public finances data from the UK.

    GBP/USD extends recovery towards 100-DMA?

    The GBP/USD pair trades flat at 1.5444, recovering from session lows struck at 1.5415 in early trades. The major wiped out losses and now eyes the next upside barrier at 100-DMA (1.5470 region) as the pound received fresh impetus after the UK public finances improved last month.

    The UK public sector net borrowing came in at GBP8.6 billion in September, beating expectations of GBP9.1 billion and much lower than GBP 11.3 billion figure recorded in August.

    However, the recovery in the cable looks short-lived as the downbeat sentiment on the European stocks, dampens appetite for riskier assets such as the GBP. The UK’s FTSE drops -0.28% to 6,327.

    Meanwhile, the pair will be influenced by the sentiment on the Wall Street as the Ferrari IPO is likely to set the tone. Besides, BOE Governor Carney’s speech will also garner some attention.

    GBP/USD Levels to consider

    The pair has an immediate resistance at 1.5468 (100-DMA) above which gains could be extended to 1.5500/06 (round number + Oct 20 High) On the flip side, support is seen at 1.5401 (h1 200-SMA) below which it could extend losses to 1.5345 (200-DMA).
    For more information, read our latest forex news.

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