OctaFX | OctaFX Forex Broker
Open trading account

GBP/USD: Fails once again near 1.5380

FXStreet (Mumbai) - The GBP/USD pair failed another attempt towards 1.54 handle and retraced slightly as the GBP bulls are seen gathering pace in a bid to pierce through 1.54 barrier at one go.

GBP/USD back above 200-DMA

The GBP/USD pair trimmed gains to 1.5366, having tested session highs at 1.5380 levels, up 0.11% so far. The major bounced-off a dip below 200-DMA and challenges the daily highs as the GBP bulls remain in total control amid persisting risk-on rally in equities, spurring demand for the riskier currencies.

While higher oil and metal prices lift the energy and mining stocks, thus boosting the sentiment around the GBP. The UK’s FTSE now advances 0.77% to 6,422 points.

On the data-front, we had the UK trade balance and the construction output numbers, which were completely ignored by markets.

The UK’s trade data showed that the deficit held steady at -11.1B in August, although missed expectations of a -10.0B reading. While the construction output negatively surprised, falling by a -4.3% m/m in Aug, against expectations of a 1% rise.

GBP/USD Levels to consider

The pair has an immediate resistance at 1.5399 (50-DMA) above which gains could be extended to 1.5445 (Aug 28 High) levels. On the flip side, support is seen at 1.5347 (200-DMA) below which it could extend losses to 1.5358 (hourly 50-SMA) levels.

Technical blow in 4hr USD/HUF chart

Technical blow in 4hr USD/HUF chart
Read more Previous

BoE Governor Carney still considering raising rates this year - MUFG

Lee Hardman, Currency Analyst at MUFG, suggests that the pound is deriving support from comments overnight from BoE Governor Carney who reiterated that he still thinks that conditions are right to consider raising rates around the turn of this year and not the turn of next year which is when the market is currently expecting the first rate hike.
Read more Next
Start livechat