GBP/USD weaker, breaches the 1.52 handle

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Nov 6, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Edinburgh) - The selling interest remains alive around the sterling at the end of the week, now dragging GBP/USD to test sub-1.5200 levels.

    GBP/USD in monthly lows ahead of data

    Spot is meandering the 1.5190 region, or multi-week lows, as market participants keep digesting the dovish tone from the BoE on Thursday. Recall that the ‘Old Lady’ showed no rush in hiking rates (first rate hike could come in early 2017), while MPC members have reiterated its 8-1 vote favouring steady rates at 0.5%.

    The pound will remain under pressure however, as apart from US Payrolls today (180K exp.), the UK docket includes Industrial and Manufacturing Production results, Trade Balance figures and the NIESR GDP Estimate.

    GBP/USD levels to watch

    At the moment, the pair is down 0.17% at 1.5181 with the immediate support at 1.5106 (low Oct.1) ahead of 1.5087 (low May 5) and finally 1.5000 (psychological level). On the other hand, a break above 1.5230 (7-month uptrend prev support now resistance) would open the door to 1.5349 (200-day sma) and finally 1.5454 (100-day sma).
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