GBP/USD stretches to 8-day high after US data

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Nov 13, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Córdoba) - GBP/USD stretched to fresh weekly highs as the dollar weakened across the board following a disappointing series of US economic data, which raises doubts about the state of the economy ahead of the decisive December FOMC meeting.

    US retail sales rose modestly by 0.1% in October, below the 0.3% increase expected, while excluding motor vehicles, sales were up 0.2%. Retail sales were unchanged in September, revised down from an initially reported 0.1% rise. Separated data showed the producer price index, fell 0.4% in October, missing expectations of a 0.2% increase.

    GBP/USD climbed to a peak of 1.5263 but quickly pulled back toward 1.5230, erasing intraday gains. Cable has posted for daily gains in a row, after bottoming out at 1.5026 last week, weighed by a dovish BoE and a strong NFP report.

    GBP/USD levels to watch

    In terms of technical levels, GBP/USD could find next resistances at 1.5263 (Nov 13 high), 1.5318 (50-day SMA) and 1.5341 (200-day SMA). On the flip side, supports might be faced at 1.5173 (Nov 12 low), 1.5114 (Nov 11 low) ahead of 1.5090 (Nov 10 low) and 1.5040 (Nov 9 low).
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