31 Jul 2015
GBP/USD consolidated above 1.56
FXStreet (Mumbai) - The bid tone on the GBP/USD ensured the spot recovered above 1.56 in the late NY session on Thursday, but the bulls are now struggling to extend gains above 1.5610-1.5620 handle.
GBP/USD: Weekly gain on cards?
The spot is trading 0.6% higher so far this week as the British Pound stayed resilient to the slightly hawkish FOMC statement and the upbeat US Q2 preliminary GDP report. The Treasury yield curve flattened - 2-year yield rose, while 10-year and 30-year yield remained relatively weak – despite which the GBP/USD made its way back above 1.56 handle.
With no major UK or US data due for release today, the month-end flows could dominate the FX markets. The GBP/USD pair appears poised for a weekly gain, unless the rate hike bets in the US strengthened further, pushing the 2-year yield higher and GBP lower.
GBP/USD Technical Levels
The immediate support is seen at 1.56, under which the spot could target 1.5547 (50-DMA). On the other hand, resistance is located at 1.5639 (38.2% of June rally) and 1.5690 (July 29 high).
GBP/USD: Weekly gain on cards?
The spot is trading 0.6% higher so far this week as the British Pound stayed resilient to the slightly hawkish FOMC statement and the upbeat US Q2 preliminary GDP report. The Treasury yield curve flattened - 2-year yield rose, while 10-year and 30-year yield remained relatively weak – despite which the GBP/USD made its way back above 1.56 handle.
With no major UK or US data due for release today, the month-end flows could dominate the FX markets. The GBP/USD pair appears poised for a weekly gain, unless the rate hike bets in the US strengthened further, pushing the 2-year yield higher and GBP lower.
GBP/USD Technical Levels
The immediate support is seen at 1.56, under which the spot could target 1.5547 (50-DMA). On the other hand, resistance is located at 1.5639 (38.2% of June rally) and 1.5690 (July 29 high).