5 Aug 2015
GBP/USD regains 1.5600 and beyond
FXStreet (Mumbai) - The British pound is seen building momentum and climbs higher versus the American dollar in the mid-European session, now lifting GBP/USD back above 1.56 handle, as the US dollar recedes across the board ahead of the upcoming US ADP and ISM services PMI data from the US.
GBP/USD rises from 1.5575
The GBP/USD pair trades 0.27% higher at 1.5607 with the GBP bulls flexing their muscles above 1.56 barrier. The cable finally made it through the 1.5600 levels again and extends further, printing fresh session highs at 1.5613. The major regained lost ground after the USD bulls took a breather mostly on profit-taking on the USD longs after the recent strength fuelled by Fed Lockhart’s hawkish comments.
Moreover, markets also moved past weaker UK services PMI report which showed that the Markit/CIPS headline PMI dipped to 57.4 in July, pulling back slightly from last month's 58.5, and below expectations of 58.
Looking ahead, focus now shifts to the latest private ADP jobs report for July, the June trade balance numbers, and the latest ISM services number for July due to be released in the New York session. ADP jobs are expected to come in at 215.000, down from 237.000 in June.
GBP/USD Levels to consider
The pair has an immediate resistance at 1.5636 (Aug 4 High) above which gains could be extended to 1.5679 (July 31 High) levels. On the flip side, support is seen at 1.5527 (Today’s Low) below which it could extend losses to 1.5498 (July 23 Low) levels.
GBP/USD rises from 1.5575
The GBP/USD pair trades 0.27% higher at 1.5607 with the GBP bulls flexing their muscles above 1.56 barrier. The cable finally made it through the 1.5600 levels again and extends further, printing fresh session highs at 1.5613. The major regained lost ground after the USD bulls took a breather mostly on profit-taking on the USD longs after the recent strength fuelled by Fed Lockhart’s hawkish comments.
Moreover, markets also moved past weaker UK services PMI report which showed that the Markit/CIPS headline PMI dipped to 57.4 in July, pulling back slightly from last month's 58.5, and below expectations of 58.
Looking ahead, focus now shifts to the latest private ADP jobs report for July, the June trade balance numbers, and the latest ISM services number for July due to be released in the New York session. ADP jobs are expected to come in at 215.000, down from 237.000 in June.
GBP/USD Levels to consider
The pair has an immediate resistance at 1.5636 (Aug 4 High) above which gains could be extended to 1.5679 (July 31 High) levels. On the flip side, support is seen at 1.5527 (Today’s Low) below which it could extend losses to 1.5498 (July 23 Low) levels.