16 Dec 2015
GBP/USD drops on Fed rate hike news
FXStreet (Mumbai) - The bid tone on the USD improved following a 25bps rate hike announcement after the US Fed, pushing the GBP/USD to a fresh daily low of 1.4957.
Back near 1.4980
The pair made its way back to trade near 1.4980 handle as the rate hike was largely in line with the estimates. The Fed statement also said the future rate hikes will be gradual, which means the next rate hikes will be data dependent.
The traders now await the comments from the Fed chairwoman Yellen. In the meantime, the two –year treasury yield; currently at 1%; could guide the GBP/USD pair.
GBP/USD Technical Levels
The immediate support is seen at 1.4940 (falling channel support on the daily chart), under which the pair could test 1.4895 (Dec 2 low). A break lower would expose 1.4803 (Apr 7 low) . On the other hand, a break above the immediate resistance at 1.5053 (Nov 24 low), would open doors for a rally to1.5087 (61.8% of Apr-Jun rally). A break higher could see the pair test 1.5113 (23.6% of 1.5819-1.4895).
Back near 1.4980
The pair made its way back to trade near 1.4980 handle as the rate hike was largely in line with the estimates. The Fed statement also said the future rate hikes will be gradual, which means the next rate hikes will be data dependent.
The traders now await the comments from the Fed chairwoman Yellen. In the meantime, the two –year treasury yield; currently at 1%; could guide the GBP/USD pair.
GBP/USD Technical Levels
The immediate support is seen at 1.4940 (falling channel support on the daily chart), under which the pair could test 1.4895 (Dec 2 low). A break lower would expose 1.4803 (Apr 7 low) . On the other hand, a break above the immediate resistance at 1.5053 (Nov 24 low), would open doors for a rally to1.5087 (61.8% of Apr-Jun rally). A break higher could see the pair test 1.5113 (23.6% of 1.5819-1.4895).