26 May 2015
GBP/USD trades below 1.5450
FXStreet (Mumbai) - The US dollar has been bid higher across the board in the Asian session on Tuesday, pushing the GBP/USD pair to an intraday low of 1.5430, before a minor recovery ensured the pair made its way back to 1.5445 levels.
European desks to favor USD?
The Friday’s strong core CPI release in the US triggered a broad based rally in the US dollar. However, given the extended weekend due to the trading holiday on Monday, the European desks are yet to price-in not only the strong CPI but also Yellen’s hawkish comments on Friday. Consequently, the bid tone on the American dollar may strengthen further in the European session.
On the data front, the investors shall await the durable goods orders report in the US, followed by Services PMI, New Home sales and consumer confidence data.
GBP/USD Technical Levels
The immediate resistance is located at 1.5519 (23.6% R of 1.4564-1.5813), above which another major hurdle is seen at 1.5868 (38.2% R of 1.7190-1.4564). On the flip side, a break below 1.5405 (200-DMA) could push the pair down to 1.5336 (38.2% R of 1.4564-1.5813).
European desks to favor USD?
The Friday’s strong core CPI release in the US triggered a broad based rally in the US dollar. However, given the extended weekend due to the trading holiday on Monday, the European desks are yet to price-in not only the strong CPI but also Yellen’s hawkish comments on Friday. Consequently, the bid tone on the American dollar may strengthen further in the European session.
On the data front, the investors shall await the durable goods orders report in the US, followed by Services PMI, New Home sales and consumer confidence data.
GBP/USD Technical Levels
The immediate resistance is located at 1.5519 (23.6% R of 1.4564-1.5813), above which another major hurdle is seen at 1.5868 (38.2% R of 1.7190-1.4564). On the flip side, a break below 1.5405 (200-DMA) could push the pair down to 1.5336 (38.2% R of 1.4564-1.5813).