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).
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