GBP/USD tests 1.4580 and retreats

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 11, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - The GBP bulls loosened the grip in the mid-European trades, with the GBP/USD pair moving-off highs as the risk-on sentiment appears to fade with the European stocks turning lower.

    GBP/USD supported on receding USD

    The GBP/USD pair trades 0.29% at 1.4566, easing-off session highs reached at 1.4580 levels. Having failed several attempts to take out stiff resistance near 1.4580 region, the cable retreats as the European stocks come slightly under pressure, thus, reducing the demand for risk/ high-yielding currencies such as the GBP.

    However, the GBP/USD pair finds support from receding US dollar against its major competitor. The USD index pares gains to trade 0.14% higher at 98.60. While a generalized strength seen across the higher yielding currencies such as the AUD, NZD and the CAD, further helps keep the recovery in GBP/USD intact.

    GBP/USD Levels to consider

    The pair has an immediate resistance at 1.4600/11 (round number/ 1h 100-SMA), above which 1.4647 (10-DMA) would be tested. On the flip side, support is seen at 1.4500/1.4495 (round number/ daily low) below which it could extend losses to 1.4480 (June 2010 levels).
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