6 May 2015
GBP/USD struggles to extend gains on weak US data
FXStreet (Mumbai) - The GBP/USD pair saw a minor jump to 1.5261 before falling back below its 10-DMA located at 1.5233 despite the weaker-than-expected monthly private sector job additions showed by US ADP data.
Focus on UK elections
The volatility in the GBP pair is on the rise ahead of the general elections in the UK, which may result in a hung parliament. Experts say the worst outcome is one of no overall majority and no coalition being formed, so either main party having to govern on a vote by vote basis. The polls have repeatedly shown two main parties- conservatives and labor – in a neck to neck race.
It remains to be seen if the currency pair on Thursday emulates its more than 300-pip fall on election day back in 2010.
GBP/USD Technical Levels
The pair now trades at 1.5221. The immediate resistance is located at 1.5250, above which the pair could rise to 1.5315 (Feb. 17 low). On the other hand, a break below 1.5163 (10-DMA) could push the pair down to 1.5100.
Focus on UK elections
The volatility in the GBP pair is on the rise ahead of the general elections in the UK, which may result in a hung parliament. Experts say the worst outcome is one of no overall majority and no coalition being formed, so either main party having to govern on a vote by vote basis. The polls have repeatedly shown two main parties- conservatives and labor – in a neck to neck race.
It remains to be seen if the currency pair on Thursday emulates its more than 300-pip fall on election day back in 2010.
GBP/USD Technical Levels
The pair now trades at 1.5221. The immediate resistance is located at 1.5250, above which the pair could rise to 1.5315 (Feb. 17 low). On the other hand, a break below 1.5163 (10-DMA) could push the pair down to 1.5100.