OctaFX | OctaFX Forex Broker
Open trading account
Back

GBP/USD stuck in tight range around 5-DMA

FXStreet (Mumbai) - GBP/USD stalled its recovery mode just below 100-DMA and edged slightly lower in Asia, and now consolidates in a thin range as we progress towards early European morning.

GBP/USD capped below 1.5430

The GBP/USD pair trades flat at 1.5419, struggling hard to extend beyond 1.5425 region, which coincides with 5-DMA. The major is seen oscillating in 10-pips narrow range almost through Asia, completely ignoring improved risk-sentiment back by rallying Asian equities and positive Australian and Chinese macro data.

Moreover, markets are reluctant to place big bets on the cable ahead of the UK services PMI report and the BOE’s ‘Super Thursday’, hence keeping GBP/USD in a tight trading range.

Later in the day, the sentiment on the European stocks and the UK PMI will be watched ahead of a batch of US data, which is expected to provide fresh cues on timing of the Fed rate lift-off.

GBP/USD Levels to consider

The pair has an immediate resistance at 1.5444/50 (100-DMA/ psychological levels) above which gains could be extended to 1.5500 (round number). On the flip side, support is seen at 1.5401/00 (Nov 2 Low/ round number) below which it could extend losses to 1.5366/57 (200-DMA/1h 200-SMA).

EUR: Euro area business cycle strong despite global jitters – Nomura

Research Team at Nomura, notes that the euro area business cycle remained in Expansion for the fourth consecutive month in October and the implied growth rate is at its strongest since July 2011 despite a marginal slowdown in momentum.
Read more Previous

China: PBoC rates need to come down further - Rabobank

Michael Every, Research Analyst at Rabobank, suggests that in a debt-laden Chinese economy, PBoC rates will need to come down much further ahead rather than rise as it can allow the market to set rates freely once official rates are close to (or below!) zero, as in the US, UK, Europe, and Japan.
Read more Next
Start livechat