7 Jul 2015
GBP/USD sinks to fresh 4-week lows near 1.5460
FXStreet (Mumbai) - The offered tone in the GBP/USD pair increased in the European session, as the British pound was relentlessly sold-off versus its US counterpart largely on the back of strengthening US dollar as risk-aversion heightened ahead of the Greece Summit. While the pound also failed to received support from mixed set of UK industrial and manufacturing production data.
GBP/USD drops from 1.5550
The GBP/USD pair trades -0.94% lower at fresh four week lows of 1.5461, witnessing nearly 200 pips drop so far. The major dropped sharply as the pound was hammered mainly driven by risk-off sentiments as markets prefer safe-haven such as US dollar as Euro group leaders meet at Brussel to discuss the grave situation in Greece with outcome likely to be a Grexit.
Moreover, sterling also extended its losses following mixed UK industrial and manufacturing production data for May. UK manufacturing declined 0.6% in May following unexpected decline by 0.4% in the previous month. UK industrial production surprisingly rose 0.4% in May on a monthly basis compared to a 0.3% increase in April. Markets expected the gauge to decline by 0.2%.
Markets now turn their focus towards Euro Summit for fresh insights while the US will get the attention with US May Trade Balance eyed along with JOLTS Job Openings.
GBP/USD Levels to consider
The pair has an immediate resistance at 1.5608 (Today’s High) above which gains could be extended to 1.5634 (July 6 High) levels. On the flip side, support is seen at 1.5420 (June 11 Low) below which it could extend losses to 1.5366 (June 10 Low) levels.
GBP/USD drops from 1.5550
The GBP/USD pair trades -0.94% lower at fresh four week lows of 1.5461, witnessing nearly 200 pips drop so far. The major dropped sharply as the pound was hammered mainly driven by risk-off sentiments as markets prefer safe-haven such as US dollar as Euro group leaders meet at Brussel to discuss the grave situation in Greece with outcome likely to be a Grexit.
Moreover, sterling also extended its losses following mixed UK industrial and manufacturing production data for May. UK manufacturing declined 0.6% in May following unexpected decline by 0.4% in the previous month. UK industrial production surprisingly rose 0.4% in May on a monthly basis compared to a 0.3% increase in April. Markets expected the gauge to decline by 0.2%.
Markets now turn their focus towards Euro Summit for fresh insights while the US will get the attention with US May Trade Balance eyed along with JOLTS Job Openings.
GBP/USD Levels to consider
The pair has an immediate resistance at 1.5608 (Today’s High) above which gains could be extended to 1.5634 (July 6 High) levels. On the flip side, support is seen at 1.5420 (June 11 Low) below which it could extend losses to 1.5366 (June 10 Low) levels.