5 Aug 2015
GBP/USD: Bulls struggle to push above 1.5650
FXStreet (Mumbai) - The GBP/USD spot rose to a session high of 1.5650 after dismal US data, but is having a hard time extending gains above the same.
US 2-year yield erases gains
The 2-year yield, which mimics rate hike expectations in the US, fell from 0.74% to trade largely unchanged on the day around 0.728% after the ADP data showed the private sector added far less jobs in July than estimated. Another set of data showed the trade deficit widened in June, with the deficit with Eurozone rising to record high.
The resulting weakness in the 2-year yield, helped the cable clock session high of 1.5650. The spot now trades just below 1.5639 (38.2% of June rally) as investors await the US ISM non-manufacturing report. Moreover, the Sterling has been on the rise since the European session ahead of tomorrow’s BOE Quarterly Inflation Report (QIR).
GBP/USD Technical Levels
The immediate resistance is located at 1.5650 (daily high), above which a major hurdle is seen at 1.57 handle. On the flip side, support is seen at 1.56 and 1.5560 (50-DMA).
US 2-year yield erases gains
The 2-year yield, which mimics rate hike expectations in the US, fell from 0.74% to trade largely unchanged on the day around 0.728% after the ADP data showed the private sector added far less jobs in July than estimated. Another set of data showed the trade deficit widened in June, with the deficit with Eurozone rising to record high.
The resulting weakness in the 2-year yield, helped the cable clock session high of 1.5650. The spot now trades just below 1.5639 (38.2% of June rally) as investors await the US ISM non-manufacturing report. Moreover, the Sterling has been on the rise since the European session ahead of tomorrow’s BOE Quarterly Inflation Report (QIR).
GBP/USD Technical Levels
The immediate resistance is located at 1.5650 (daily high), above which a major hurdle is seen at 1.57 handle. On the flip side, support is seen at 1.56 and 1.5560 (50-DMA).