25 Mar 2015
GBP/USD at session highs
FXStreet (Mumbai) - The GBP/USD pair rose to session highs as the mood has turned risk friendly at the onset of the European session.
GBP/USD: Bounced from the previous session’s low
The pair bounced-off from the previous session’s low at 1.4830 as the risk-on mood led to the unwinding of long dollar trades. The pair gained more than 50 pips in last one hour despite the sustained weakness in the UK Gilt yields. It remains to be seen if the Pound continues to strengthen despite the 3.1 basis points drop seen in the UK 10-year Gilt yield.
The risk-on mood could be buoyed further, in case the German IFO index beats the market expectation by a wide margin.
GBP/USD Technical Levels
At the moment, the pair is trading at 1.4887. The immediate resistance is seen at 1.4911 (5-DMA), above which gains could be extended to 1.4984 levels. On the flip side, a break below 1.4860 (10-DMA) could push the pair lower to 1.4830.
GBP/USD: Bounced from the previous session’s low
The pair bounced-off from the previous session’s low at 1.4830 as the risk-on mood led to the unwinding of long dollar trades. The pair gained more than 50 pips in last one hour despite the sustained weakness in the UK Gilt yields. It remains to be seen if the Pound continues to strengthen despite the 3.1 basis points drop seen in the UK 10-year Gilt yield.
The risk-on mood could be buoyed further, in case the German IFO index beats the market expectation by a wide margin.
GBP/USD Technical Levels
At the moment, the pair is trading at 1.4887. The immediate resistance is seen at 1.4911 (5-DMA), above which gains could be extended to 1.4984 levels. On the flip side, a break below 1.4860 (10-DMA) could push the pair lower to 1.4830.