Thursday, October 29, 2015

GBP/USD fades a spike to 1.5275

FXStreet (Mumbai) - The GBP bulls regain control somewhat in the European morning, now keeps GBP/USD in close proximity to the daily highs reached in last minutes beyond 1.5270 levels.

GBP/USD capped below hourly 20-SMA

The GBP/USD pair trades modestly flat at 1.5264, easing-off fresh session highs posted at 1.5275 some minutes ago. A renewed buying interest on the GBP, refuelled the recovery mode in the GBP/USD pair, as the USD bulls remain on the backseat and consolidate the previous rally ahead of the crucial advance Q3 GDP estimate from the US due later today.

Moreover, markets now await the reaction of the European traders’ to the hawkish FOMC statement, thus restricting further upside in the cable.

On Wednesday, GBP/USD slumped to lowest in more than two-week at 1.5252 on the release of the Fed outcome, which revived hopes of 2015 Fed rate rise and sent the USD through the roof against its major rivals.

In the day ahead, the pair will be influenced by the UK net lending to individuals and CBI realized sales data ahead of a batch of significant US data.

GBP/USD Levels to consider

The pair has an immediate resistance at 1.5296/1.5300 (5-DMA/ round number) above which gains could be extended to 1.5350/60 (200/20-DMA). On the flip side, support is seen at 1.5245 (Oct 28 Low) below which it could extend losses to 1.5221 (daily S1).
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