23 Jul 2015
GBP/USD retakes 1.56 handle, but for how long?
FXStreet (Mumbai) - The GBP/USD has recovered from the low of 1.5585 to trade around 1.5610, but faces risk of dropping below 1.56 in case of a better-than-expected US data.
GBP/USD: Bid tone weakened after retail sales data
The bid tone on the GBP has weakened after the UK data showed retail sales unexpectedly declined in June. Consequently, the GBP/USD has been unable to extend gains over and above 1.5610 in the last couple of hours.
It remains to be seen if the fresh offers push the spot back below 1.56 after the release of the US data, which is expected to show the initial jobless claims data last week stayed below 300K for the 20th consecutive week.
GBP/USD Technical Levels
The immediate resistance is seen at 1.5638 (38.2% Fib R of June rally) ahead of the psychological resistance at 1.57. On the other hand, a break below the immediate support at 1.5607 (23.6% of Apr-June rally) could open doors for 1.5589 (hourly 200-MA).
GBP/USD: Bid tone weakened after retail sales data
The bid tone on the GBP has weakened after the UK data showed retail sales unexpectedly declined in June. Consequently, the GBP/USD has been unable to extend gains over and above 1.5610 in the last couple of hours.
It remains to be seen if the fresh offers push the spot back below 1.56 after the release of the US data, which is expected to show the initial jobless claims data last week stayed below 300K for the 20th consecutive week.
GBP/USD Technical Levels
The immediate resistance is seen at 1.5638 (38.2% Fib R of June rally) ahead of the psychological resistance at 1.57. On the other hand, a break below the immediate support at 1.5607 (23.6% of Apr-June rally) could open doors for 1.5589 (hourly 200-MA).