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6 Aug 2015
GBP/USD hovers closer to 38.2% retracement of today’s plunge
FXStreet (Mumbai) - The GBP/USD is trading around 1.5532; which is the 38.2% Fib level of the plunge witnessed today from 1.5637 to 1.5467.
Rate hike data dependent – BOE’s Carney
The spot recovered from the session low of 1.5467 after Bank of England governor Carney said the timing of the rate hike is nearing, although the decision to raise rates is data dependent. The comments halted the panic among GBP bulls, triggered earlier today by the slightly less hawkish minutes released earlier today.
The GBP also received support from the slightly weaker US weekly jobless claims data. The Gilt yields in the US are off-lows, while the 2-yr yield in the US has weakened 1.6 basis points to 0.717%. Consequently, the spot recovered to 1.5545 before falling back to trade just below 1.5532 levels.
GBP/USD Technical Levels
The immediate support is seen at 1.5507 (23.6% of 1.5637-1.5467), under which the spot could re-test the daily low at 1.5467. On the other hand, a break above 1.5545 (post BOE high) could open doors for a re-test of 1.5568 (38.2% of Jul 14-Apr 15 plunge).
Rate hike data dependent – BOE’s Carney
The spot recovered from the session low of 1.5467 after Bank of England governor Carney said the timing of the rate hike is nearing, although the decision to raise rates is data dependent. The comments halted the panic among GBP bulls, triggered earlier today by the slightly less hawkish minutes released earlier today.
The GBP also received support from the slightly weaker US weekly jobless claims data. The Gilt yields in the US are off-lows, while the 2-yr yield in the US has weakened 1.6 basis points to 0.717%. Consequently, the spot recovered to 1.5545 before falling back to trade just below 1.5532 levels.
GBP/USD Technical Levels
The immediate support is seen at 1.5507 (23.6% of 1.5637-1.5467), under which the spot could re-test the daily low at 1.5467. On the other hand, a break above 1.5545 (post BOE high) could open doors for a re-test of 1.5568 (38.2% of Jul 14-Apr 15 plunge).