17 Mar 2015
GBP/USD falls below 1.48
FXStreet (Mumbai) - The British Pound weakened along with the UK Gilt yields, taking the GBP/USD pair below 1.48 levels.
Fall in GBP/USD triggered by EUR/GBP buying
The weakness in the pair could be mainly on account of buying witnessed in the EUR/GBP cross. Moreover, the UK-US benchmark bond yield spread favors GBP. The 10-year yield in the UK is down just 1 basis points (bps) at 1.667%, while in the US the 10-year yield has lost 3.3 bps to trade at 2.066%. The buying in the EUR/GBP cross, up 0.62% so far, could be responsible for the weakness in the GBP.
The losses could be extended further as an upbeat Zew survey data and the Eurozone CPI data could trigger further buying the EUR/GBP cross.
GBP/USD Technical Levels
At the moment, the pair is trading at 1.4780. The immediate support is seen at 1.4746, under which the pair could fall to 1.4698. On the other hand, a rise above 1.48, could see the pair re-test the daily high at 1.4844.
Fall in GBP/USD triggered by EUR/GBP buying
The weakness in the pair could be mainly on account of buying witnessed in the EUR/GBP cross. Moreover, the UK-US benchmark bond yield spread favors GBP. The 10-year yield in the UK is down just 1 basis points (bps) at 1.667%, while in the US the 10-year yield has lost 3.3 bps to trade at 2.066%. The buying in the EUR/GBP cross, up 0.62% so far, could be responsible for the weakness in the GBP.
The losses could be extended further as an upbeat Zew survey data and the Eurozone CPI data could trigger further buying the EUR/GBP cross.
GBP/USD Technical Levels
At the moment, the pair is trading at 1.4780. The immediate support is seen at 1.4746, under which the pair could fall to 1.4698. On the other hand, a rise above 1.48, could see the pair re-test the daily high at 1.4844.