GBP/USD consolidates below 1.5700

FXStreet (Edinburgh) - The sterling remains on the positive footing on Tuesday, with GBP/USD now looking to stabilize in the upper 1.5600s.

GBP/USD boosted by risk, UK data

The solid re-emergence of the risk appetite plus better-than-expected results from the UK’s industrial sector gave the pound extra wings and lifted spot to 5-month peaks just above 1.5700 the figure.

The upbeat sentiment around yields in the UK bond market is has also been collaborating with the upside momentum in GBP, ahead of the NIESR GDP Estimate due later in the European evening.

GBP/USD key levels

As of writing the pair is up 0.62% at 1.5683 with the next resistance at 1.5713 (high May 12) ahead of 1.5753 (high Dec.17) and then 1.5785 (high Dec.16). On the flip side, a break below 1.5557 (low May 12) would open the door to 1.5498 (high Apr.29) and finally 1.5393 (low May 11).

Expect two more rate cuts by PBoC in 2015 – DB

Economists at Deutsche Bank, predict that two more rate cuts, and one RRR cut in China this year, and further forecast Chinese growth to slowdown to 6.8% in Q2.
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GBP/USD bullish target at 1.5880 – Growth Aces

With momentum clearly favouring the GBP bulls, the Growth Aces Research Team, maintains a long position on GBP/USD, targeting 1.5880 levels.
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