7 Aug 2015
GBP/USD flirts with 1.5500
FXStreet (Mumbai) - The British pound extends its downslide versus the American dollar in the European session, now pushing GBP/USD near session lows on the 1.54 handle, as the recent BOE minutes and the inflation report released on Thursday pushed back rate-hike bets this year which continues to dampen the sentiment around the GBP.
GBP/USD drops from 1.5524 levels
The GBP/USD pair trades modestly flat at 1.5503,
recovering from fresh session lows of 1.5489. The cable dropped to session lows in last hours as the pound came under fresh selling as BOE’s member Broadbent’s is now crossing wires noting that he is unable to provide specific data for the rate-hike while adding that rate-hikes would be ‘gradual’ and ‘limited’.
He is also seen commenting on inflationary pressures being low and also that productivity and wages, both are increasing.
Meanwhile, the major also remains undermined on the back of an unexpected dovish tone delivered by the BOE minutes on Thursday along with lower revisions of the inflation outlook.
Markets now remain cautious and favour the greenback ahead of the crucial US NFP numbers which may have major impact on the pair.
GBP/USD Levels to consider
The pair has an immediate resistance at 1.5524 (Today’s High) above which gains could be extended to 1.5552 (July 10 High) levels. On the flip side, support is seen at 1.5466 (Aug 6 Low) below which it could extend losses to 1.5449 (July 14 Low) levels.
GBP/USD drops from 1.5524 levels
The GBP/USD pair trades modestly flat at 1.5503,
recovering from fresh session lows of 1.5489. The cable dropped to session lows in last hours as the pound came under fresh selling as BOE’s member Broadbent’s is now crossing wires noting that he is unable to provide specific data for the rate-hike while adding that rate-hikes would be ‘gradual’ and ‘limited’.
He is also seen commenting on inflationary pressures being low and also that productivity and wages, both are increasing.
Meanwhile, the major also remains undermined on the back of an unexpected dovish tone delivered by the BOE minutes on Thursday along with lower revisions of the inflation outlook.
Markets now remain cautious and favour the greenback ahead of the crucial US NFP numbers which may have major impact on the pair.
GBP/USD Levels to consider
The pair has an immediate resistance at 1.5524 (Today’s High) above which gains could be extended to 1.5552 (July 10 High) levels. On the flip side, support is seen at 1.5466 (Aug 6 Low) below which it could extend losses to 1.5449 (July 14 Low) levels.