Tuesday, October 20, 2015

GBP/USD: between key technical levels

FXStreet (Guatemala) - GBP/USD is currently trading at 1.5472 with a high of 1.5498 and a low of 1.5426.

GBP/USD is slightly bid post the daily rally through the 200 DMA and 55 DMA last week. The major opened the week on the front foot up to test the 1.55 handle, but was faded back 1.5460 holding above the 50 SMA on the hourly chart that is at 1.5458 currently.

The pound has been under pressure while markets out price a rate hike from the BoE, but there has been some better performances in the economy of late and markets are starting to focus more on 2016 in respect of lift-off from the Fed, allowing for upside GBP/USD. This week comes with retails sales for the UK as the main attraction on the calendar.

GBP/USD levels

Technically, the top of the range is circa 1.5658/90, and that allows for the possibility of some follow through. The top of the cloud resistance at 1.5490 would need to give way first. However, the technicals are more neutral/bearish and a break below the 1.5280 level would come from the bearish trend again targeting 1.5108 recent lows.
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