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GBP/USD rises to 1.55, trades above 100-DMA

FXStreet (Mumbai) - The buying interest in Sterling spiked, taking the GBP/USD pair to 1.55 levels following an uptick in the European equities.

Risk-on in Europe

The pair took out the resistance of 100-DMA at 1.5490 as the rise in the European equities triggered a classic risk-on reaction in the FX markets. EUR and GBP advanced against the USD, while the Japanese Yen took a back seat.

Ahead in the day, the focus would be on BOE Carney’s testimony a Treasury Committee on the Bank of England bill today. The US housing data, if strong, could push up December rate hike bets and influence the GBP/USD pair.

GBP/USD Technical Levels

The spot now trades just above its 100-DMA at 1.5490. A failure to sustain above the same could see the pair re-test daily low of 1.5454, under which losses could be extended to 1.54 levels. On the other side, a break above 1.55 would open doors for 1.5547 (61.8% of 1.5819-1.5107), followed by 1.5568 (38.2% of Jul14-Apr15 plunge). A break above the same would open doors for 1.5600-1.5620.

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