Wednesday, September 9, 2015

GBP/USD finds support at 200-DMA

FXStreet (Mumbai) - The offers around GBP/USD so far have failed to push it below its 200-DMA located at 1.5351 levels.

Further losses ahead?

The rise in the UK trade deficit in July was largely in line with the weakness in the new export orders highlighted by the PMI reports since May. The drop in the exports to non-EU countries – US, China and Switzerland is more a cause of concern and may weaken the case of BOE rate hike next year.

Consequently, the odds of further losses below 200-DMA are high. However, the oversold nature of Sterling due to sharp drop in the last two week’s and no clear view regarding Fed’s September rate hike could restrict losses in the GBP.

GBP/USD Technical Levels

The spot now trades around 1.5360. The immediate support is located at 1.5351 (200-DMA), under which losses could be extended to 1.53 levels. On the other side, resistance is seen at 1.5413 (previous day’s high) and 1.5490 (50% of last two week’s fall).
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