22 Jul 2015
GBP/USD flirting with 1.5600
FXStreet (Mumbai) - The British pound erased partial gains and retraced versus the US dollar in the European session, now pushing GBP/USD to 1.5600 levels, as sterling eases from BOE Miles-induced spike, although remains supported ahead of BOE minutes.
BOE minutes in focus
The GBP/USD pair trades 0.27% higher at 1.5596, retracing from session highs at 1.5625. The major jolted in early moves this session after BOE Miles said that inflation is likely to converge to 2% target by year-end or early next-year, further bolstering the case for a rate hike this year.
However, the gains in GBP/USD were capped as the US dollar edged higher across the board, reversing previous session’s slump. The dollar index which measures the greenback’s strength against its major peers now trades 0.10% higher at 97.50.
Looking ahead, UK traders await Wednesday's BoE minutes, especially after Governor Mark Carney explicitly stated that rates could rise at the turn of this year. While UK retail sales data due tomorrow is closely eyed for further momentum.
GBP/USD Levels to consider
The pair has an immediate resistance at 1.5625 (Today’s High) above which gains could be extended to 1.5672 (July 17 High) levels. On the flip side, support is seen at 1.5551 (Today’s Low) below which it could extend losses to 1.5527 (July 21 Low) levels.
BOE minutes in focus
The GBP/USD pair trades 0.27% higher at 1.5596, retracing from session highs at 1.5625. The major jolted in early moves this session after BOE Miles said that inflation is likely to converge to 2% target by year-end or early next-year, further bolstering the case for a rate hike this year.
However, the gains in GBP/USD were capped as the US dollar edged higher across the board, reversing previous session’s slump. The dollar index which measures the greenback’s strength against its major peers now trades 0.10% higher at 97.50.
Looking ahead, UK traders await Wednesday's BoE minutes, especially after Governor Mark Carney explicitly stated that rates could rise at the turn of this year. While UK retail sales data due tomorrow is closely eyed for further momentum.
GBP/USD Levels to consider
The pair has an immediate resistance at 1.5625 (Today’s High) above which gains could be extended to 1.5672 (July 17 High) levels. On the flip side, support is seen at 1.5551 (Today’s Low) below which it could extend losses to 1.5527 (July 21 Low) levels.