GBP/USD treads water around 20-DMA, UK GDP eyed

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Oct 27, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - The cable is seen trading in a flat-lining almost through the Asian session, with GBP/USD hovering above the daily pivot & 200-DMA placed near 1.5345.

    UK prelim GDP in focus

    The GBP/USD pair trades flat at 1.5355, wavering in a 15 pips narrow range. The major trades cautious ahead of the crucial UK prelim GDP which is expected to show a marginal slowdown in the GDP growth.

    The UK is expected to publish its advance GDP estimate for the third quarter. Markets expect 0.5-0.6% growth in Q3 q/q after 0.7% in Q2, while on yearly basis GDP growth is expected to show a 2.4% expansion.

    Moreover, the GBP/USD pair remains under pressure on the back of diminishing bids for riskier assets amid persisting risk-off sentiment ahead of the Fed decision due to be published tomorrow.

    Meanwhile, focus now remains on the UK GDP figures ahead of a batch of US macro data, which may have major impact on the pair.

    GBP/USD Levels to consider

    The pair has an immediate resistance at 1.5392/1.5400 (10-DMA + round number) above which gains could be extended to 1.5452 (100-DMA). On the flip side, support is seen at 1.5302/01 (Oct 23 & 26 Lows) below which it could extend losses to 1.5263/50 (daily S2 + psychological levels).
    For more information, read our latest forex news.

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