27 Jan 2015
GBP/USD remains below 1.5100
FXStreet (Edinburgh) - The demand for the sterling remains subdued post-UK GDP, with GBP/USD hovering over 1.5075/70.
GBP/USD weaker after GDP disappointed
Spot eroded the initial gains following the less auspicious results from the UK GDP, expanding below estimates during the last three months of 2014 at 0.5% QoQ and 2.7% on a yearly basis. Poor data from Mortgage Approvals also emphasized the downside, missing the median during December. Next of note for the pair will be the US docket ahead of tomorrow’s critical FOMC meeting.
According to Karen Jones, Head of FICC Technical Analysis at Commerzbank, “Near term rallies are expected to continue to struggle at 1.5229/1.5300, but key resistance is the downtrend at 1.5401, while capped here, our negative bias will remain entrenched”.
GBP/USD key levels
At the moment the pair is losing 0.13% at 1.5077 with the next support at 1.5000 (psychological level) followed by 1.4972 (low Jan.26) and then 1.4952 (low Jan.23). On the flip side, a breakout of 1.5118 (10-d MA) would open the door to 1.5142 (hourly high Jan.22) and finally 1.5205 (21-d MA).
GBP/USD weaker after GDP disappointed
Spot eroded the initial gains following the less auspicious results from the UK GDP, expanding below estimates during the last three months of 2014 at 0.5% QoQ and 2.7% on a yearly basis. Poor data from Mortgage Approvals also emphasized the downside, missing the median during December. Next of note for the pair will be the US docket ahead of tomorrow’s critical FOMC meeting.
According to Karen Jones, Head of FICC Technical Analysis at Commerzbank, “Near term rallies are expected to continue to struggle at 1.5229/1.5300, but key resistance is the downtrend at 1.5401, while capped here, our negative bias will remain entrenched”.
GBP/USD key levels
At the moment the pair is losing 0.13% at 1.5077 with the next support at 1.5000 (psychological level) followed by 1.4972 (low Jan.26) and then 1.4952 (low Jan.23). On the flip side, a breakout of 1.5118 (10-d MA) would open the door to 1.5142 (hourly high Jan.22) and finally 1.5205 (21-d MA).