No takers for GBP/USD despite upbeat UK data

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Dec 17, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - The bid tone on the GBP failed to improve despite the uptick in the UK retail sales, pushing the GBP/USD from 1.5003 to 1.4960 levels.

    USD demand intact on hawkish Fed

    The demand for the USD stays intact as the markets were caught off guard by the hawkish interest rate Dot Chart of the Fed released yesterday. Consequently, the GBP/USD pair failed to tick higher despite the better-than-expected UK retail sales figure.

    Moreover, the cable rallied from the low of 1.4940 to 1.4990 ahead of the data in anticipation of the rebound in the retail sales. Hence, the drop post UK data may also be a part of the “buy the rumor, sell the fact” trade.

    GBP/USD Technical Levels

    At 1.4950, the immediate resistance is seen at 1.50, above which the pair could rise to 1.5087 (61.8% of Apr-Jun rally), followed by a hurdle at 1.5113 (23.6% of 1.5819-1.4895). On the other hand, a break below 1.4895 (latest cyclical low) would expose 1.4856 (Apr 21 low).
    For more information, read our latest forex news.

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