17 Mar 2015
GBP/USD: Will it extend gains?
FXStreet (Mumbai) - The GBP/USD pair has moved higher ahead of the European session, after having recovered from the low of 1.4968, despite of a lack of support from the UK Gilt yields.
GBP hit by confusion over rate hike guidance
The GBP came under pressure last week after the Bank of England (BOE) governor last week expressed concerns over the strength in the Pound, while stating that gradual rate hike is likely to be the next policy move.
However, his concerns regarding strength in the Pound were read by the markets as an indication of a delay in the rate hikes. Consequently, the UK 10-year Gilt fell from 1.964% to 1.692%.
However, the question remains whether the GBP could extend gains today amid an absence of fresh economic data out of the UK and weakness in the UK Gilt yields. Furthermore. The markets could bid up the USD ahead of the FOMC meeting.
GBP/USD Technical Levels
The immediate support is seen at 1.4808 (5-DMA), under which losses could be extended to 1.4750 levels. On the flip side, resistance is seen at 1.4830-1.4850, above which gains could be extended to 1.4949 levels.
GBP hit by confusion over rate hike guidance
The GBP came under pressure last week after the Bank of England (BOE) governor last week expressed concerns over the strength in the Pound, while stating that gradual rate hike is likely to be the next policy move.
However, his concerns regarding strength in the Pound were read by the markets as an indication of a delay in the rate hikes. Consequently, the UK 10-year Gilt fell from 1.964% to 1.692%.
However, the question remains whether the GBP could extend gains today amid an absence of fresh economic data out of the UK and weakness in the UK Gilt yields. Furthermore. The markets could bid up the USD ahead of the FOMC meeting.
GBP/USD Technical Levels
The immediate support is seen at 1.4808 (5-DMA), under which losses could be extended to 1.4750 levels. On the flip side, resistance is seen at 1.4830-1.4850, above which gains could be extended to 1.4949 levels.