Thursday, November 12, 2015

GBP/USD gyrates 1.52 handle, bears gaining strength

FXStreet (Mumbai) - The GBP/USD pair dipped to 1.5197, before recovering slightly to trade around 1.5205 levels after breach of key technical levels strengthened the bears.

Offered near key fib

The pair was offered earlier today near 1.5248; which is a confluence of 50% fib (of Apr low-Jun high) and Oct 28 low. The slide continues in Europe as the pair fell below 1.5206 (38.2% of last week’s fall).

Moreover, the demand for the USD is on the rise in early Europe as the treasury yields have ticked higher in anticipation of hawkish comments from Fed officials - Yellen, Bullard, Dudley, Evans, Lacker – later today.

GBP/USD Technical Levels

A repeated failure to rise back above 1.5206 (38.2% of last week’s drop),could push the pair down to 1.5163 (Sep 4 low). A break lower would open doors for a drop to 1.5138 (23.6% of last week’s drop). On the other side, resistance is located at 1.5248 (50% of Apr-Jun rally), followed by a rise to 1.5315 (50-DMA).
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