Wednesday, November 25, 2015

GBP/USD: Bulls face exhaustion near hourly 50-SMA

FXStreet (Mumbai) - The overnight recovery in GBP/USD stalled and ran through fresh offers near the hourly 50-SMA located at 1.5119, with the price now wavering around 1.51 handle.

GBP/USD keeps range around daily pivot at 1.5096

The GBP/USD pair gains 0.12% and trades at 1.5100, re-attempting recovery from hourly 10-SMA at 1.5092 levels. The bulls appear to face exhaustion after recovering more than 50-pips from two-week lows and struggles to extend gains beyond 1.51 handle.

The GBP/USD recovery appears short-lived as the recent dovish and downbeat comments from the UK’s Treasury select committee on the economic and policy outlook will continue to weigh on investors’ minds.

While the greenback may halt its corrective mode ahead of the release of a batch US economic data amid thin markets as the US markets enter a holiday-break on account of Thanksgiving Day.

Later in the day, no macro data is due to be reported from the UK data, although the UK’s autumn forecasts statement to be released later in the European session will keep the GBP traders busy.

GBP/USD Levels to consider

The pair has an immediate resistance at 1.5119 (1h 50-SMA), above which 1.5159 (Nov 24 High) would be tested. On the flip side, support is seen at 1.5051 (Nov 24 Low) below which it could extend losses to 1.5038 (Nov 9 Low).
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