OctaFX | OctaFX Forex Broker
Open trading account
Back

GBP/USD in fresh lows near 1.5220

FXStreet (Edinburgh) - The demand for the sterling remains subdued on Tuesday, now dragging GBP/USD to test lows in sub-1.5230 levels.

GBP/USD capped by 1.5400

The pair’s initial upside has found strong resistance in the vicinity of 1.5400 the figure today, sparking the ongoing deep correction to the 1.5220 area. The better tone in GBP has found initial support in the UK’s M&A sector, later reverted by disappointing inflation figures in the UK economy during September.

Comments by MPC member G.Vlieghe stating that the exchange rate remains ‘unreasonably strong’ have weighed on spot, while I.McCafferty emphasized that current domestic disinflationary pressures would be transitory.

GBP/USD important levels

As of writing the pair is retreating 0.74% at 1.5234 and a breakdown of 1.5128 (up trend from ytd low) would expose 1.5107 (low Oct.1) and then 1.5089 (low May 5). On the other hand, the immediate hurdle lines up at 1.5411 (55-day sma) ahead of 1.5443 (Fibo 38.2% of 1.5658-1.5107) and then 1.5500 (100-day sma/psychological level).

UK inflation consistent with MPC’s minutes – BBH

James Rossiter, Senior Global Strategist at TD Securities, notes that the UK inflation for September came in at -0.1% y/y as we expected, but weaker than market expectations of a 0.0% reading.
Read more Previous

AUD/USD extends correction below 0.73, tanks 1%

The Aussie mirrors the moves in the gold prices and drops sharply lower on Tuesday, as renewed concerns over China's economic prospects triggered the long-due correction.
Read more Next
Start livechat