GBP/USD takes out Monday’s high, Eyes key Fib

FXStreet (Mumbai) - The GBP/USD rose above Monday’s high of 1.5230 and is eyeing 1.5248 (50% of Apr-Jun rally) after the US industrial production unexpectedly contracted in October.

Supported by the uptick in UK core inflation

Sterling rebounded from the low of 1.5154 earlier today after the UK core inflation in October ticked higher.
Consequently, the uptick in the US core inflation had a little damaging effect on the GBP/USD pair, which made its way higher to near 1.5230 levels after the US industrial production unexpectedly printed at -0.2%.

Moreover, the USD is being offered across the board in the US session, despite the uptick in the treasury yields.

GBP/USD Technical Levels

At 1.5236, The immediate resistance is seen at 1.5248 (50% of Apr-Jun rally) and 1.5262 (50% of 1.5497-1.5027), above which the pair could test 1.53 handle. On the other side, a failure to sustain above 1.5206 (38.2% of 1.5497-5027) could push the spot lower to 1.5169 (hourly 200-MA), under which a sell-off to 1.5138 (23.6% of 1.5497-1.5027) appears possible.

FOMC will not be too disappointed with IP - ING

Rob Carnell, analyst at ING Bank noted the mixed production report from the US for October, with overall production down 0.2%mom, but a better then expected manufacturing figure, which registered a 0.4%mom gain.
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