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8 Sep 2015
Oversold GBP/USD extends recovery, rises to 200-DMA
FXStreet (Mumbai) - The GBP/USD pair, after having shed more than 600 pips in nine consecutive sessions in the last two weeks, witnessed a recovery to its 200-DMA located at 1.5352 levels ahead of the European session.
Trades above key fib level
The spot now trades above 1.5317 (23.6% 1.5819-1.5162). Cable strengthened on Monday amid low volumes on account of the trading holiday in the US. The drop in the US unemployment rate to 5.1% - Fed’s full employment level – kept the 2015 rate hike expectations alive despite the weak payrolls figure reported on Friday. However, the Sterling was oversold and the profit-taking could be behind the spike to 200-DMA.
With no major data due, the focus is likely to be on the sentiment in the stock markets. The UK industrial production and trade deficit figures due for release tomorrow are likely to get attention in case stock markets stay dull.
GBP/USD Technical levels
The spot currently trades around 1.5345. The immediate resistance is located at 1.5352 (200-DMA), followed by a major resistance at 1.54. On the other hand, support is seen at 1.5317 (23.6% 1.5819-1.5162) and Friday’s low of 1.5162.
Trades above key fib level
The spot now trades above 1.5317 (23.6% 1.5819-1.5162). Cable strengthened on Monday amid low volumes on account of the trading holiday in the US. The drop in the US unemployment rate to 5.1% - Fed’s full employment level – kept the 2015 rate hike expectations alive despite the weak payrolls figure reported on Friday. However, the Sterling was oversold and the profit-taking could be behind the spike to 200-DMA.
With no major data due, the focus is likely to be on the sentiment in the stock markets. The UK industrial production and trade deficit figures due for release tomorrow are likely to get attention in case stock markets stay dull.
GBP/USD Technical levels
The spot currently trades around 1.5345. The immediate resistance is located at 1.5352 (200-DMA), followed by a major resistance at 1.54. On the other hand, support is seen at 1.5317 (23.6% 1.5819-1.5162) and Friday’s low of 1.5162.