27 Apr 2015
GBP/USD poised to test 1.51
FXStreet (Mumbai) - The British pound continues to be dragged down by its US counterpart in the European session, with GBP/USD hitting fresh session lows, mainly driven by expectations of downside risks faced by UK’s economy to be reflected by UK Q1 2015 GDP numbers, while the greenback remains broadly bid, correcting previous losses.
GBP/USD drops from 1.5140
The GBP/USD pair trades -0.39% at 1.5130, near fresh session lows of 1.5124 reached some minutes ago. The GBP/USD pair extends losses largely after the UK CBI Industry quarterly survey showed some signs of softness in the outlook for the UK's industrial sector, which pushed the pound deeper in to red.
The business optimism balance, at 3, is the lowest since January 2013. The quarterly output volume balance for the past 3 months, at +4, is also the weakest since January 2013. Overall, the survey supports the view the industrial recover has been losing pace.
Markets also remain cautious ahead of tomorrow’s crucial UK prelim GDP print which is expected to show the UK economic performance slowed modestly at the start of this year, to a quarterly growth of 0.5%, down from 0.6% in Q4 2014.
Meanwhile, traders now turn their focus US services PMI reading for further momentum on the pair.
GBP/USD Levels to consider
The pair has an immediate resistance at 1.5196 (Feb 3 High) above which gains could be extended to 1.5250 levels. On the flip side, support is seen at 1.5124 (Today’s Low) below which it could extend losses to 1.5100 levels.
GBP/USD drops from 1.5140
The GBP/USD pair trades -0.39% at 1.5130, near fresh session lows of 1.5124 reached some minutes ago. The GBP/USD pair extends losses largely after the UK CBI Industry quarterly survey showed some signs of softness in the outlook for the UK's industrial sector, which pushed the pound deeper in to red.
The business optimism balance, at 3, is the lowest since January 2013. The quarterly output volume balance for the past 3 months, at +4, is also the weakest since January 2013. Overall, the survey supports the view the industrial recover has been losing pace.
Markets also remain cautious ahead of tomorrow’s crucial UK prelim GDP print which is expected to show the UK economic performance slowed modestly at the start of this year, to a quarterly growth of 0.5%, down from 0.6% in Q4 2014.
Meanwhile, traders now turn their focus US services PMI reading for further momentum on the pair.
GBP/USD Levels to consider
The pair has an immediate resistance at 1.5196 (Feb 3 High) above which gains could be extended to 1.5250 levels. On the flip side, support is seen at 1.5124 (Today’s Low) below which it could extend losses to 1.5100 levels.