GBP/USD stuck in tight range around 5-DMA

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Nov 4, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - GBP/USD stalled its recovery mode just below 100-DMA and edged slightly lower in Asia, and now consolidates in a thin range as we progress towards early European morning.

    GBP/USD capped below 1.5430

    The GBP/USD pair trades flat at 1.5419, struggling hard to extend beyond 1.5425 region, which coincides with 5-DMA. The major is seen oscillating in 10-pips narrow range almost through Asia, completely ignoring improved risk-sentiment back by rallying Asian equities and positive Australian and Chinese macro data.

    Moreover, markets are reluctant to place big bets on the cable ahead of the UK services PMI report and the BOE’s ‘Super Thursday’, hence keeping GBP/USD in a tight trading range.

    Later in the day, the sentiment on the European stocks and the UK PMI will be watched ahead of a batch of US data, which is expected to provide fresh cues on timing of the Fed rate lift-off.

    GBP/USD Levels to consider

    The pair has an immediate resistance at 1.5444/50 (100-DMA/ psychological levels) above which gains could be extended to 1.5500 (round number). On the flip side, support is seen at 1.5401/00 (Nov 2 Low/ round number) below which it could extend losses to 1.5366/57 (200-DMA/1h 200-SMA).
    For more information, read our latest forex news.

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