1. Hello Guest Click here to check FX Binary Point Financial Directory

GBP/USD supported above 1.4600, ignores oil slump

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 7, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - The GBP/USD pair halts its recent downward spiral heading into the early European morning, keeping the prices firmly above 1.46 handle.

    GBP/USD indifferent to Oil, stocks slump

    The GBP/USD pair modestly flat at 1.4636, moving slightly away from fresh nine-month lows struck at 1.4600 in the last US session. The cable is seen consolidating the previous heavy declines and oscillates back and forth in a slim range on the 1.46 barrier.

    The pound, being a higher yielding currency, failed to react to the extending risk-off environment triggered by China stock market sell-off and also ignored the plummeting oil prices. At the same time, the resilience in the GBP/USD pair can be justified to the ongoing weakness surrounding the US dollar against its major peers.

    Markets now await fresh momentum from the European open while on the data-front, the Halifax HPI data will eyed amid a data-light UK docket.

    GBP/USD Levels to consider

    The pair has an immediate resistance at 1.4656/78 (1h 50-SMA/ 5-DMA), above which 1.4700/05 (round number/ 1h 100-SMA) would be tested. On the flip side, support is seen at 1.4600 (round number) below which it could extend losses to 1.4563 (April 2015 Low).
    For more information, read our latest forex news.

Share This Page