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29 Jul 2015
GBP/USD struggles to extend gains above 1.56
FXStreet (Mumbai) - The GBP/USD bulls are having a tough time extending gains above 1.56 since the NY as investors avoid making big bets ahead of the FOMC statement due for release today.
Rejected at 1.5628
The spot was offered at a high of 1.5628 in the previous session, which was followed by consolidation in the narrow band of 1.5610-1.5624. The prices have dropped to a low of 1.5607 today ahead of the European session. The focus now shifts to the Fed policy statement due for release today.
With no major UK data due for release, the spot is at the mercy of the market’s appetite for the USD and EUR ahead of the FOMC event. Fresh signs of risk aversion in the Ftse and other major European equity markets could negatively affect the pair.
GBP/USD Technical Levels
The immediate support is seen at 1.56 handle, a break below which could send the pair down to 1.5554 (50-DMA). On the other hand, resistance is seen at 1.5639 (38.2% Fib of June rally) ahead of the major hurdle at 1.5671 (July 23 high).
Rejected at 1.5628
The spot was offered at a high of 1.5628 in the previous session, which was followed by consolidation in the narrow band of 1.5610-1.5624. The prices have dropped to a low of 1.5607 today ahead of the European session. The focus now shifts to the Fed policy statement due for release today.
With no major UK data due for release, the spot is at the mercy of the market’s appetite for the USD and EUR ahead of the FOMC event. Fresh signs of risk aversion in the Ftse and other major European equity markets could negatively affect the pair.
GBP/USD Technical Levels
The immediate support is seen at 1.56 handle, a break below which could send the pair down to 1.5554 (50-DMA). On the other hand, resistance is seen at 1.5639 (38.2% Fib of June rally) ahead of the major hurdle at 1.5671 (July 23 high).