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GBP/USD remains capped by 1.5200

FXStreet (Edinburgh) - The pound is alternating gains and losses vs. the dollar at the beginning of the week, taking GBP/USD further below the 1.5200 key support.

GBP/USD consolidates in sub-1.52 levels

The pair now seems to be stabilizing in the upper-1.5100s following the sharp rejection from September peaks in the 1.5660/70 area. Market expectations of a rate hike by the Bank of England have been somehow pushed back, mainly after the Federal Reserve left unchanged its monetary policy at this month’s meeting.

However, and following speeches and comments by some MPC members, speculations of a potential lift-off by the BoE during the first half of 2016 remain well on the cards, although the prevailing risk-aversion theme and USD-dynamics remain in the centre of the debate for the time being.

GBP/USD significant levels

As of writing the pair is up 0.02% at 1.5181 with the next resistance at 1.5263 (high Sep.25) ahead of 1.5289 (high Sep.24) and finally 1.5364 (high Sep.23). On the flipside, a break below 1.5135 (low Sep.25) would aim for 1.5089 (low May 7) and then 1.5035 (low Apr.24).

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