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25 Sep 2015
GBP/USD cheers US GDP report, trims losses
FXStreet (Mumbai) - The selling in the GBP/USD appears to have halted after the commerce department in the US revised the Q2 GDP higher to 3.9%.
US GDP positive for risk assets?
Risk assets extended the gains after the US GDP was revised higher on account of stronger consumption. Sterling, which was hammered to a 4-1/2 month low ahead of the report, recovered slightly to trade around 1.5180 levels.
Moreover, the data pushed up two-year treasury yields (mimics rate hike bets) higher. Consequently, Sterling managed to take back few pips as a rise in rate hike bets and risk-on rally markets also means a BOE rate hike could be near.
GBP/USD Technical Levels
The immediate support is seen directly at 1.51 levels, under which the pair may find support immediately around 1.5087 (61.8% of Apr-June rally). On the other side, resistance is seen at 1.52 and 1.52 60 (daily high).
US GDP positive for risk assets?
Risk assets extended the gains after the US GDP was revised higher on account of stronger consumption. Sterling, which was hammered to a 4-1/2 month low ahead of the report, recovered slightly to trade around 1.5180 levels.
Moreover, the data pushed up two-year treasury yields (mimics rate hike bets) higher. Consequently, Sterling managed to take back few pips as a rise in rate hike bets and risk-on rally markets also means a BOE rate hike could be near.
GBP/USD Technical Levels
The immediate support is seen directly at 1.51 levels, under which the pair may find support immediately around 1.5087 (61.8% of Apr-June rally). On the other side, resistance is seen at 1.52 and 1.52 60 (daily high).