Tuesday, September 8, 2015

GBP/USD tests key Fib, flirts with 1.54 handle

FXStreet (Mumbai) - The GBP/USD tested 1.5409 (38.2% of Apr-June rally) in the early US session, and currently trades around the same amid uptick in the European stocks and US index futures.

Bounced from 50% Fib and capped at 38.2% Fib?

The spot bounced off from 1.5248 (23.6% of Apr-June rally) in the late NY session on Monday. Sterling, being the risk currency and also oversold on the charts, rallied on the back of a rise in the stock markets and Merger and Acquisition news.

At the moment, the spot is finding it hard to pierce resistance at 1.5409 (38.2% R). The US calendar has a very little to offer today. Consequently, the FX markets could continue to track the sentiment on the Wall Street, although cautious tone could be seen ahead of tomorrow’s UK trade data and industrial production.

GBP/USD Technical Levels

As of now, the spot is trading around 1.5410; up 0.8% on the day. The immediate resistance is located at 1.5413 (38.2% of last two week’s drop), followed by major hurdle at 1.5505 (100-DMA). On the other side, support is seen at 1.5352 (200-DMA) and 1.53 levels.
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